Stories
India's Semiconductor Ambition Expands Beyond Fabs, Targets Full Ecosystem Growth
N
News18•22-09-2026, 10:30
India's Semiconductor Ambition Expands Beyond Fabs, Targets Full Ecosystem Growth
- •India's semiconductor strategy is shifting from solely wafer fabrication to building a complete ecosystem, including chip design, equipment, materials, advanced packaging, and R&D.
- •YES Securities reports that the economic opportunity in the surrounding semiconductor ecosystem is much larger than in wafer fabrication alone, creating chances for various suppliers and firms.
- •The government's Semicon 2.0 programme, with an outlay of Rs 1,27,500 crore, supports this expansion, focusing on six key areas and attracting Rs 1 lakh crore in investment commitments.
- •Global companies like Applied Materials and Lam Research are investing significantly in India, alongside Tata Electronics' strategic agreements for its Dholera fab, indicating increasing localization.
- •India's strong chip-design workforce (20% globally) is a key asset, but the next challenge is to move towards developing and owning semiconductor intellectual property and products.
Key Questions Answered
The government's Semicon 2.0 programme features an outlay of Rs 1,27,500 crore and focuses on six key areas: semiconductor design, machines and materials, new fabs, ATMP/OSAT, research and development, and talent.
Applied Materials has announced a USD 5 billion investment over the next decade in India, while Lam Research plans to invest approximately Rs 10,000 crore to build a silicon-component manufacturing facility and expand research activities.
Government data cited in the YES Securities report shows that India accounts for approximately 20 per cent of the global chip-design workforce.
