India Semiconductor Mission 2.0 Launch and Progress
Union Minister for Electronics and Information Technology Shri Ashwini Vaishnaw announced at SEMICON India 2026 that India's semiconductor mission has transitioned from foundation-building to scaling the industry. The original ISM 1.0 program, envisioned as a six-year initiative, achieved its objectives in just four years. ISM 2.0 will focus on developing a complete semiconductor ecosystem across six key pillars: Design; Materials and Machines; More Fabs; More ATMP units; R&D; and Talent development.
Manufacturing Achievements and Global Competitiveness
Five semiconductor manufacturing plants have commenced commercial production in India, demonstrating the country's ability to compete on both cost and quality in the global semiconductor market. Demand for semiconductor products is currently high, with several companies rapidly expanding production. Notably, a fab scheduled for commissioning in 2028 already has a large portion of its capacity booked, indicating strong market confidence.
Design Ecosystem Development
India's design capability, rooted in the IT industry and global capability centers, is extending into the semiconductor sector. The government estimates at least 200 chip design companies will emerge under ISM 2.0, which would represent a game changer for building homegrown semiconductor IP. During ISM 1.0, more than 105 chip design startups gained access to state-of-the-art Electronic Design Automation (EDA) tools through government initiatives, while 20 startups received venture capital funding. Students from approximately 400 engineering colleges, including institutions in smaller cities, have received access to industry-grade EDA tools.
Skilling and Workforce Development
India has trained approximately 70,000 design engineers within four years, approaching the initial target of 85,000. Under ISM 2.0, the focus will expand beyond chip design to include system design, creating talent that is highly sought after by the industry. The program also addresses the growing demand for cleanroom technicians and maintenance personnel, with the existing target of training 100,000 technicians potentially needing upward revision based on industry demand.
Precision Manufacturing and Cross-Sector Applications
The electronics manufacturing ecosystem has helped develop precision manufacturing capabilities among MSMEs, which now support multiple sectors including electronics, mobile manufacturing, aerospace, aviation, defence, and semiconductors. The next focus will be on applied R&D within manufacturing plants to improve product quality and manufacturing processes. A multi-level training model is being developed to meet the skilled personnel requirements for the precision manufacturing ecosystem.
Export Achievements and Global Integration
ATMP units are already exporting to Japan, while chips designed and manufactured in India are being incorporated into products exported to countries such as Switzerland and Germany. The minister highlighted that semiconductors and electronics are highly globalized industries, with components and products moving across international boundaries as part of global supply chains.
Interconnected Technology Ecosystems
The electronics, semiconductors, and AI applications ecosystems are closely interconnected, with major server manufacturers showing interest in setting up manufacturing operations in India. The ecosystem covering components, finished products, laptops, servers, and accessories is gradually taking shape, which is expected to lead to more consistent growth once fully established.
India's position as a trusted country with strong IP protection is attracting global semiconductor and electronics companies that had previously not established operations outside their parent countries, indicating growing confidence in India's capabilities.