India Approves 12 Semiconductor Projects with Investment of INR 1.64 Trillion
2026-07-01 11:16
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en.Wedoany.com Reported - The Indian government has approved 12 semiconductor manufacturing projects with an investment of approximately INR 1.64 trillion, all of which are being advanced under the framework of the India Semiconductor Mission (ISM).

According to an official fact sheet, the approved projects include one semiconductor fabrication unit, two compound semiconductor manufacturing units, and nine packaging units. The India Semiconductor Mission 2.0, announced in the 2026-27 Union Budget, further strengthens the country's commitment to chip manufacturing, with a key focus on semiconductor equipment, materials, indigenous intellectual property, and supply chain resilience.

In the design domain, the Design-linked Incentive Scheme has supported 24 projects, with 105 companies receiving assistance with advanced chip design tools and completing 23 design tape-outs across multiple foundries, reflecting India's growing industrial capabilities in the semiconductor design sector.

Additionally, the IndiaAI Mission has been approved with an expenditure exceeding INR 103.72 billion, establishing a shared computing facility with over 45,000 GPUs to support AI research and deployment. Under the AI foundational models pillar, 15 large language models and small language models are being supported across multiple modalities. The AI Kosh platform now hosts over 12,519 datasets, 307 AI models, and 20 toolkits, providing AI development resources to researchers and institutions nationwide.

To extend AI capabilities beyond metropolitan areas, India has established 27 data and AI labs in tier-2 and tier-3 cities, distributed 684 scholarships to students, and supported 8.4 million learners through the YUVA AI curriculum. Eighteen centers of excellence have been set up, and 20 Indian AI startups have received capacity-building support.

The convergence of AI and semiconductor investments is reshaping India's electronics manufacturing landscape. The sector has grown into an industry valued at INR 13 trillion, with electronics becoming India's third-largest export category. India is now the world's second-largest mobile phone manufacturer, boasting an advanced manufacturing ecosystem that integrates AI data center components, 5G equipment, and high-end networking devices into the global technology supply chain, while simultaneously generating substantial domestic employment opportunities.