Twelve semiconductor manufacturing projects, totalling almost Rs 1.64 lakh crore in investment, have been approved by the India Semiconductor Mission (ISM), marking another significant milestone on the path to becoming a worldwide semiconductor and artificial intelligence (AI) center.
The projects that have been authorised encompass a single unit for semiconductor fabrication, two units for compound semiconductor fabrication, and nine units for semiconductor packaging, as stated in a government fact sheet. The government of India hopes that by making these expenditures, it can boost its domestic chip production capacity and become less reliant on imports.
The announcement of India Semiconductor Mission 2.0 in the Union Budget 2026-27 is expected to keep the trend going. To assist India become a competitive competitor in the global chip industry, the next phase of the initiative will focus on semiconductor equipment, essential materials, indigenous intellectual property, sophisticated manufacturing methods, and resilient global supply chains.
The semiconductor design industry is booming in India as well. The Design Linked Incentive (DLI) Scheme is currently funding 24 different semiconductor design projects. Also, 23 chips have been taped out at different foundries around the world, including advanced technology nodes, and 105 businesses have gotten access to cutting-edge chip design tools. This is indicative of the nation’s rising stature as a leader in the field of semiconductor design, innovation, and research.
Along with semiconductor production, the government is allocating around Rs 10,372 crore to enhance the IndiaAI Mission. Its building of a shared national compute center with more than 45,000 GPUs is one of its most notable accomplishments; this facility gives academics, businesses, and other organisations access to the massive processing power necessary to advance artificial intelligence.
In addition, fifteen LLMs and SLMs spanning speech, text, and vision applications are receiving funding from the government. More than 12,519 datasets, 307 AI models, and 20 AI toolkits are now available to academics and developers across the nation through the AI Kosh platform.
There have been 27 Data and AI Labs set up in Tier-2 and Tier-3 cities, and 684 student fellowships given out, all with the goal of making sure that AI development is inclusive. An impressive 8.4 million students have been trained under the YUVA AI program, greatly increasing India’s pool of potential AI experts. In addition, 20 AI companies in India have been provided with capacity building support, and 18 Centres of Excellence have been set up.
Investments in artificial intelligence and semiconductors are changing the electronics manufacturing ecosystem in India, according to the government. With electronics currently ranking as India’s third-largest export category, the sector has evolved into an industry worth Rs 13 lakh crore. Along with increasing manufacturing of 5G equipment, AI-enabled data center components, and advanced networking hardware, India has become the world’s second-largest mobile phone maker, further integrating the country into global technology supply chains.
Image: Express Computer
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