India’s Semiconductor Push Moves From Projects to Commercial Production

India’s semiconductor programme is entering a more execution-heavy phase, with the government shifting its emphasis from project approvals and factory construction toward commercial chip production. Speaking at the opening of SEMICON India 2026 in New Delhi on September 17, Prime Minister Narendra Modi said chips from Indian facilities are beginning to reach customers, while additional plants are moving toward commercial output.

Under the first phase of the India Semiconductor Mission, 12 projects have been approved across six states, covering fabrication, packaging and other parts of the semiconductor value chain. Economic Times reports that facilities operated by Micron, Kaynes Semicon and CG Semi have already entered commercial production. The 12 projects were approved earlier under Semicon 1.0; they were not newly announced at Thursday’s event.

The government has also expanded its semiconductor support programme through Semicon 2.0, approved in July with an outlay of ₹1,27,500 crore, or roughly $13.5 billion. The programme spans six areas including chip design, manufacturing and broader ecosystem development. The higher allocation was reiterated at SEMICON India rather than introduced there for the first time.

Talent and ecosystem depth are becoming the next priorities. Modi said more than 70,000 engineers have already been trained against a target of one lakh, while the government is calling for greater private-sector participation in R&D. SEMICON India 2026 itself brings together more than 600 companies, international participants and stakeholders across materials, equipment, chip design, fabrication, advanced packaging and electronics systems.

The larger challenge now is whether India can build enough suppliers, specialised talent, packaging capacity and domestic demand around its new fabs to create a durable semiconductor ecosystem. The programme has moved beyond policy announcements, but sustained commercial output and deeper integration into global supply chains will determine how far that progress ultimately goes.