India's Semiconductor and AI Development Progress
India is building comprehensive capabilities across semiconductor and artificial intelligence technologies through significant government initiatives aimed at achieving technological self-reliance and global leadership. The Semicon India program has evolved with Semicon 1.0 laying the foundation with a ₹76,000 crore outlay, followed by Semicon 2.0 approved in July 2026 with a ₹1,27,500 crore outlay to scale India's semiconductor ecosystem across six strategic pillars: chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging, research and development, and talent development.
Semiconductor Manufacturing and Projects
Twelve semiconductor projects have been approved across six states with investment commitments exceeding ₹1.64 lakh crore, spanning silicon and compound semiconductor fabs, display fabrication, and advanced packaging facilities. Three facilities have already commenced commercial production, marking India's transition from policy to manufacturing. These facilities will supply critical components for automobiles, telecommunications, aerospace, power electronics, and consumer electronics.
Semiconductor Design and Skilling
Under the Chips to Startup (C2S) program, Electronic Design Automation (EDA) tools have been deployed in 320 academic institutions, training over 68,000 students. Twenty-four semiconductor design projects have been approved for financial support, and 105 startups/MSMEs have received EDA tool support under the Design Linked Incentive Scheme. By April 2026, 211 chips were taped out by 75 institutions, with 7 chips successfully fabricated at various nodes including advanced 12 nm technology.
Global Semiconductor Partnerships
India has established global partnerships with the United States, Japan, Singapore, the Netherlands, Germany, and the European Union. Semicon India 2025 brought together 350+ exhibitors and participants from 48 countries and regions, recording 35,000 registrations, 30,000 footfalls, and 25,000 online viewers. Twelve Memorandums of Understanding were announced to strengthen product development, services, and semiconductor skill development.
IndiaAI Mission Progress
The IndiaAI Mission was approved with an outlay of approximately ₹10,372 crore and has made significant strides. The mission has expanded shared compute capacity to 45,000+ Graphics Processing Units (GPUs) as of June 2026. By August 2026, 237 projects had accessed subsidized AI computing, covering 93.18 lakh GPU hours, providing affordable high-performance computing for AI model development.
AI Model Development and Deployment
From 506 applications received, the government selected 20 indigenous foundation model proposals, including 12 Large Multimodal Models and 8 Small Language Models. AI Kosh hosts over 14,000 datasets and 331 AI models as of July 2026. IndiaAI initiatives have developed 62 AI prototypes and deployed 20 AI solutions across public-sector institutions, with 11 national-level hackathons and innovation challenges expanding the pipeline.
AI Infrastructure and Research
Fifty-eight Artificial Intelligence Centres of Excellence have been approved across States and Union Territories, with 22 already initiated across 13 States/UTs. The National Mission on Interdisciplinary Cyber-Physical Systems has established 25 Technology Innovation Hubs across leading academic institutions. Thirteen Responsible AI projects were approved under the Safe & Trusted AI pillar as of July 2026, addressing bias mitigation, machine unlearning, deepfake detection, and privacy-preserving AI.
Data Center Expansion
Data center capacity has grown from 375 MW in 2020 to approximately 1,575 MW currently, with centers located in Mumbai, Navi Mumbai, Chennai, Hyderabad, Bengaluru, Delhi NCR, and Gujarat. The industry is expanding into Andhra Pradesh, Madhya Pradesh, Chhattisgarh, and West Bengal.
Global Recognition and Rankings
The Stanford Global AI Vibrancy Report 2025 ranked India third globally in AI competitiveness and ecosystem vibrancy. In 2025, India was the second-largest contributor to GitHub AI projects. The India AI Impact Summit 2026 saw participation from delegations from more than 100 countries and 20 international organizations, with a declaration adopted by 92 countries and organizations. India joined the Pax Silica coalition to strengthen resilient global silicon supply chains.