Industry Odisha Bureau, Sep 17: India’s semiconductor strategy is widening beyond fabrication plants. The focus now includes design, packaging, manufacturing, equipment, materials, and talent. This broader ecosystem approach is becoming central to India’s technology ambitions. It also reflects a larger nation building strategy around advanced manufacturing.
Electronics Growth Creates Strong Foundation
India’s semiconductor push rests on a rapidly expanding electronics manufacturing base. Electronics production has risen sharply over the past decade. Output increased from ₹1.9 lakh crore during 2014-15. It reached ₹13.11 lakh crore during 2025-26. Electronics exports also expanded significantly during this period. Exports rose from ₹38,000 crore to ₹4.24 lakh crore.
Mobile manufacturing has grown even faster. Mobile phone production reached ₹6.27 lakh crore during 2025-26. Exports climbed to ₹2.59 lakh crore during the same period. This manufacturing scale strengthens demand for domestic semiconductor capabilities.
Strategy Widens Beyond Fabs
India’s semiconductor strategy is no longer centred only on fabs. Policymakers are building capabilities across the entire value chain. Chip design has become an important strategic priority.
Advanced packaging is receiving greater policy attention. Equipment and materials are also entering the investment framework. Talent development remains another critical pillar. This widening approach recognises the complexity of semiconductor manufacturing.
Investment Support Gains Scale
Government investment support has expanded substantially. The first Semicon India programme carried ₹76,000 crore. The next phase increases policy support significantly. Semicon 2.0 carries an outlay above ₹1.27 lakh crore. The programme targets several semiconductor ecosystem segments. These include manufacturing, packaging, design, research, materials, and talent. This investment support is intended to deepen domestic industrial capabilities.
Manufacturing Pipeline Expands
India has approved multiple semiconductor projects across several states. Committed investment already exceeds ₹1.64 lakh crore. The projects span fabrication and advanced packaging facilities. Some facilities have already moved into commercial production. That represents an important shift from policy to execution. India’s semiconductor manufacturing story is now becoming more tangible. The next challenge will involve scaling production reliably.
Packaging Becomes Strategic Priority
Packaging is becoming increasingly important within the semiconductor ecosystem. Modern chips require sophisticated testing and integration capabilities. Advanced packaging can improve performance and efficiency. It is especially important for artificial intelligence applications.
High performance computing also depends heavily on packaging innovation. Building local packaging capabilities reduces overseas dependence. It also strengthens India’s position across the semiconductor supply chain.
Chip Design Adds Intellectual Depth
India already has considerable semiconductor design talent. The opportunity is converting engineering strength into commercial products. Government programmes are supporting startups and academic institutions.
Shared EDA tools are reducing design costs. Training programmes are also expanding the talent pipeline. These efforts could deepen India’s indigenous chip development capabilities.
Supply Chain Resilience Drives Policy
Global semiconductor disruptions have changed government priorities worldwide. Supply chain concentration is now viewed as a strategic risk. India wants to reduce dependence on limited overseas manufacturing hubs.
Domestic manufacturing can improve resilience across critical electronics sectors. Local packaging can further strengthen supply chain security. Equipment and material capabilities remain equally important. The strategy therefore extends beyond producing individual chips.
Nation Building Meets Technology Policy
Semiconductors are increasingly viewed as strategic national infrastructure. They power telecommunications, automobiles, defence, healthcare, and digital services. Artificial intelligence is making advanced chips even more important.
That gives semiconductor development a wider nation building dimension. Domestic capabilities can support economic and technological resilience. They can also create high value manufacturing and engineering employment.
AI Strengthens Semiconductor Demand
Artificial intelligence is accelerating demand for advanced processors. Data centres require large quantities of high performance chips. India’s expanding AI infrastructure will increase semiconductor requirements. That creates another reason to deepen local capabilities.
Chip design and manufacturing could eventually support domestic AI systems. This would connect semiconductor strategy with digital infrastructure development.
Global Opportunity Expands
Global companies are actively diversifying semiconductor supply chains. India wants to capture part of that realignment. The opportunity extends across manufacturing, design, packaging, and systems. International partnerships can accelerate technology and investment flows.
However, competitiveness will depend on execution quality. Reliable infrastructure and skilled manpower will remain essential.
Ecosystem Integration Becomes Next Test
India has already attracted significant semiconductor investment. The next challenge is connecting every part of the ecosystem. Fabs require equipment, chemicals, materials, and specialised engineering. Design startups need affordable fabrication and commercial customers.
Packaging facilities need scale and technology depth. Manufacturers need reliable domestic and international supply chains.Talent development must keep pace with investment.
Semiconductor Strategy Enters New Phase
India’s semiconductor strategy is entering a deeper industrial phase. The ambition now extends beyond attracting fabrication plants. It involves building interconnected capabilities across the entire ecosystem. Manufacturing will remain important.
Packaging and design will become equally strategic. Investment support will continue driving capacity creation. Supply chain resilience will shape long term policy priorities. For India, semiconductors are becoming part of nation building. The real objective is creating a durable technology and manufacturing ecosystem.
