India Globally Competitive in Chips, Says Ashwini Vaishnaw

India Has Become Globally Competitive in Semiconductor Manufacturing

India has reached an important stage in its semiconductor development, with Electronics and Information Technology Minister Ashwini Vaishnaw saying the country is now globally competitive in chips.

Speaking to reporters on the sidelines of the Semicon India Summit 2026 in New Delhi, Vaishnaw said semiconductor products being manufactured in India are meeting international standards in both quality and cost.

He said production has started at five semiconductor facilities and that their output is meeting standards required for export competition.

The minister described the development as a transition from building the foundation of India's semiconductor ecosystem to expanding production and strengthening the country's position in the global industry.

Five Semiconductor Facilities Are Already Operational

India's semiconductor push has moved from policy announcements towards commercial production.

According to the Economic Times report, five of the 12 projects approved under the first phase of the India Semiconductor Mission (ISM 1.0) are now operational.

The first phase of the programme had an overall financial outlay of about ₹76,000 crore. Semiconductor assembly, testing, marking and packaging facilities operated by companies including Micron Technology, Kaynes Semicon and CG Semi have started commercial production.

The operational facilities provide India with practical manufacturing capabilities in a sector that has traditionally been dominated by a limited number of global production hubs.

Government Expects More Than 1 Lakh Semiconductor Jobs

The expanding semiconductor ecosystem could also create substantial employment opportunities.

Vaishnaw said the growth of the industry gives the government confidence that more than 100,000 new jobs can be created in the semiconductor sector in the near future.

The employment opportunity extends beyond chip manufacturing itself.

A larger semiconductor ecosystem requires engineers, technicians, equipment specialists, researchers, software professionals, supply-chain workers and other skilled employees.

The development of this talent base is therefore becoming an important part of India's semiconductor strategy.

Semicon 1.0 to Semicon 2.0

Vaishnaw described India's semiconductor journey in two broad phases.

The first phase, Semicon 1.0, focused primarily on establishing the foundation for domestic semiconductor manufacturing.

The next phase, Semicon 2.0, is intended to build on that foundation and expand the ecosystem.

The government has already received investment interest of approximately $11 billion to $12 billion from companies under ISM 2.0, according to Vaishnaw.

The next phase is expected to cover a wider range of semiconductor activities, including manufacturing, packaging, design, equipment and talent development.

Global Investors Are Showing Greater Interest

The operational facilities are also being viewed by the government as a way to demonstrate India's manufacturing capabilities to international investors.

Vaishnaw said the products coming out of the operational plants have encouraged additional global investors to consider India.

The Semicon India Summit 2026 has brought together companies, investors, technology firms and policymakers from across the world.

More than 300 foreign companies from around 30 countries are participating in the three-day summit, with Japan and Singapore among the countries with the largest contingents.

Japan Companies Explore Manufacturing and Research Partnerships

Japan has emerged as an important participant in India's semiconductor expansion.

Vaishnaw said 68 Japanese companies at the Japan pavilion were finalising manufacturing, research and partnership plans in India.

Such interest could contribute to the development of local supply chains and strengthen India's links with established semiconductor and electronics ecosystems in Asia.

International partnerships are particularly important because semiconductor manufacturing requires specialised equipment, materials, technology and technical expertise.

23 MoUs Signed at Semicon India Summit

The summit has also resulted in new business agreements.

According to the Economic Times report, participating companies signed 23 memoranda of understanding (MoUs) during the event.

The agreements are part of the broader effort to attract investments and establish partnerships across different parts of the semiconductor and deep-tech ecosystem.

The development indicates that India's semiconductor ambitions are increasingly being linked with private-sector investment rather than relying only on government funding.

India Deep Tech Alliance Invests ₹2,170 Crore

The semiconductor push is also connected to India's broader deep-tech ecosystem.

The India Deep Tech Alliance (IDTA) announced at the summit has invested approximately ₹2,170 crore in 56 Indian deep-tech companies over the past year.

The companies span areas including:

• Artificial intelligence

• Quantum computing

• Robotics

• Space technology

• Energy

• Biotechnology

• Digital economy

The consortium includes technology companies such as Nvidia, Applied Materials, CG Power and Lam Research, along with investment firms including Accel, Blume Ventures, Celesta Capital and Premji Invest.

India Wants to Strengthen the Global Chip Supply Chain

India's semiconductor strategy comes at a time when companies and governments are seeking more diversified and resilient technology supply chains.

Semiconductors are critical to industries ranging from smartphones and automobiles to artificial intelligence, telecommunications, defence and healthcare.

Prime Minister Narendra Modi said at the summit's inauguration that India's semiconductor development could contribute to global supply-chain resilience as companies look for trusted manufacturing locations.

India is therefore seeking to position its semiconductor sector not only as a domestic manufacturing programme but also as part of the global chip ecosystem.

New Semiconductor Facilities in Gujarat and Punjab

The summit also highlighted the expansion of commercial semiconductor packaging capacity.

Prime Minister Modi launched commercial production at two facilities: Suchi Semicon's ₹868-crore unit near Surat and an expansion of CDIL's facility in Mohali.

These facilities add to India's growing semiconductor packaging capabilities.

The development is significant because semiconductor packaging is an essential part of the chip manufacturing chain, even though it occurs after the fabrication stage.

Focus on Semiconductor Skills and Education

Building manufacturing capacity is only one part of India's semiconductor strategy.

The government is also focusing on developing a specialised workforce capable of supporting the industry.

Vaishnaw said the government plans to formally adopt an educational model for high-school students that would create tiered competence in semiconductor manufacturing.

He said the model has already been tested by a major semiconductor company through a 240-hour chip-related course. The government plans to incorporate the approach into the talent-development component of ISM 2.0.

The curriculum at universities is also expected to expand to include areas such as systems design.

Addressing Ease-of-Doing-Business Concerns

As international companies explore semiconductor investments in India, some have raised operational issues involving customs, transportation and permissions.

Vaishnaw said the government had received feedback from country-level industry roundtables and would work with companies to address these concerns.

Foreign firms have also called for measures such as green corridors to facilitate the movement of critical semiconductor equipment.

Efficient movement of specialised machinery is important because semiconductor projects depend on expensive and highly sensitive equipment that can require carefully managed logistics.

Odisha Emerges as Another Semiconductor Hub

Odisha is also seeking a larger role in India's semiconductor ecosystem.

Odisha Chief Minister Mohan Charan Majhi said the state has received interest from companies from Japan and Sweden regarding an 870-acre Odisha Silicon Valley manufacturing park near Bhubaneswar-Cuttack.

The state has also announced an additional 25% fiscal support on eligible capital expenditure for projects approved under the India Semiconductor Mission, according to the Economic Times report.

Two semiconductor projects approved under ISM 1.0 in Odisha are expected to be ready by next year.

These include a silicon-carbide-based compound semiconductor facility by SicSem Private Limited and an advanced packaging and embedded glass substrate facility by 3D Glass Solutions.

India's Semiconductor Ambition Goes Beyond Chip Packaging

While packaging facilities represent an important first step, India's longer-term ambition is to develop a broader semiconductor ecosystem.

This includes:

• Semiconductor design

• Chip fabrication

• Advanced packaging

• Testing

• Equipment manufacturing

• Materials

• Research and development

• Skilled workforce development

• Deep-tech startups

Developing capabilities across these areas could reduce dependence on imported semiconductor components and provide Indian companies with opportunities to participate in global supply chains.

Key Semiconductor Developments in India

IndicatorLatest InformationSemiconductor ministerAshwini VaishnawOperational facilities under ISM 1.05 of 12 approved projectsISM 1.0 financial outlayAbout ₹76,000 croreExpected new semiconductor jobsMore than 1 lakhISM 2.0 investment interestAbout $11–12 billionForeign companies at Semicon India 2026More than 300Countries representedAbout 30MoUs signed at summit23IDTA investment₹2,170 croreDeep-tech companies supported by IDTA56

Source: Economic Times and statements made at Semicon India Summit 2026.

What India's Global Competitiveness Claim Means

Vaishnaw's assessment that India is globally competitive is based on the government's reported performance of operational semiconductor facilities and their ability to produce products meeting international quality and cost standards.

However, global semiconductor competitiveness involves more than packaging output.

India's longer-term position will also depend on its ability to scale production, attract sustained private investment, develop specialised talent, strengthen domestic suppliers and build capabilities across the semiconductor value chain.

The transition from a small number of operational facilities to a broad industrial ecosystem will therefore remain a key challenge.

The Road Ahead for India's Chip Industry

The next stage of India's semiconductor programme will focus on scaling the capabilities created under the first phase.

The government will need to coordinate investments, infrastructure, logistics, skills and technology partnerships while addressing concerns raised by international companies.

If new projects progress as planned, India could develop a larger role in semiconductor assembly, packaging, design and eventually other segments of the value chain.

The industry will also be closely watched for its ability to generate employment and attract global companies looking to diversify their manufacturing and research operations.

Bottom Line

Electronics and IT Minister Ashwini Vaishnaw has said India is now globally competitive in semiconductors, with products from five operational chip packaging facilities meeting international standards for quality and cost.

The government expects the expanding semiconductor ecosystem to create more than 100,000 new jobs, while investment interest of around $11–12 billion has been reported under ISM 2.0.

With new facilities, international partnerships, deep-tech investment and semiconductor training programmes being developed, India's chip strategy is moving from establishing basic capacity towards building a wider ecosystem.

The key test for the coming years will be whether India can scale these investments and develop capabilities across more parts of the semiconductor value chain while remaining competitive on cost, quality and technology.