**Modi Promotes India as a Global Semiconductor Hub at SEMICON India 2026 Conference**
**New Delhi, India** – Prime Minister Narendra Modi has outlined India's ambition to establish itself as a "trusted" global hub for semiconductor manufacturing during his address at the SEMICON India 2026 conference held in New Delhi on Thursday. This initiative is part of a broader strategy to enhance India's high-tech industry and cater to the increasing global demand for semiconductor chips.
In his speech, Modi emphasized the urgent need for new and reliable locations for chip manufacturing, particularly in light of the growing demand driven by advancements in artificial intelligence and the expansion of data centers. He stated, "The world needs new and trusted locations for chip manufacturing and India is preparing itself for this." This positioning aims to attract companies looking for alternative manufacturing destinations amid ongoing global supply chain challenges and geopolitical tensions.
The conference marked a significant milestone with the announcement of the commencement of commercial production at two new semiconductor facilities in India, bringing the total number of operational chip production units in the country to five. This development is part of India's ambitious semiconductor initiative, Semicon 2.0, which has received substantial backing of $13.5 billion. Under this program, a total of twelve chip fabrication plants have been approved, indicating a robust commitment to expanding the domestic semiconductor ecosystem.
Modi highlighted the importance of research and development, urging companies to invest in these areas within India. He also called for the growth of fabless semiconductor firms, which focus on designing chips without managing their own fabrication plants. "This year, we are talking about the commercial production of our chips. India’s chips will go out to the world," he said, reflecting confidence in the country's manufacturing capabilities.
The Semicon 2.0 initiative aims to create a comprehensive semiconductor ecosystem encompassing chip design, semiconductor equipment and materials, fabrication, advanced packaging, research and development, and talent development. Modi expressed optimism that as the domestic ecosystem matures, the number of projects and investments will continue to grow.
The conference also attracted significant investment commitments from leading global chip equipment manufacturers. US-based Applied Materials announced plans to invest $5 billion in India over the next decade, focusing on research, domestic supply chains, and workforce development. Meanwhile, Lam Research revealed intentions to invest approximately $1.04 billion to set up its first silicon-component manufacturing facility in India and expand its research operations, which will include silicon ingot production and processing for advanced semiconductor technologies.
The demand for semiconductors in India is projected to reach $87 billion by fiscal year 2030 and $206 billion by fiscal year 2035, according to a roadmap released by NITI Aayog, India's planning body. This growth trajectory underscores the urgency for India to bolster its domestic semiconductor manufacturing capabilities, especially given that the country spent nearly $150 billion on semiconductor imports between fiscal years 2017 and 2025.
In addition to domestic initiatives, India is seeking to enhance cooperation in advanced technologies through international forums such as BRICS. The recent New Delhi Declaration from the BRICS summit supports increased collaboration in artificial intelligence and quantum technologies, further solidifying India's role in the global tech landscape.
As India embarks on this ambitious journey to become a key player in the semiconductor industry, the government's strategic investments and partnerships with global firms are expected to play a crucial role in achieving these goals. The developments at the SEMICON India 2026 conference signal a significant step forward in positioning India as a competitive and reliable source of semiconductor manufacturing on the world stage.