Modi Unveils $13.5 Billion Expansion of Chip Mission
The second phase of India’s semiconductor mission will expand support for manufacturing, design and supply chains as AI drives demand for chips and power.
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Prime Minister Narendra Modi on Thursday, 17 September, unveiled a $13.5 billion second phase of India’s semiconductor mission as the government seeks to build more of the chip supply chain inside the country.
Speaking at the opening of SEMICON India 2026 in New Delhi, Modi said 12 semiconductor projects have been approved and the next phase will expand support beyond fabrication into design, intellectual property, equipment, chemicals, gases and materials.
“The world is looking for new and trusted manufacturing destinations. India is steadily preparing itself to meet this need,” Modi said.
The government is seeking to expand beyond individual fabrication and assembly projects into chip design, intellectual property, advanced packaging, equipment, chemicals, gases and materials.
Modi also called on semiconductor companies to conduct more research and development in India.
The push comes as artificial intelligence changes the requirements of the semiconductor industry.
Modi said AI demand is increasing the importance of areas beyond processor performance, including memory, heat management and the wider systems surrounding advanced chips.
AI infrastructure is also increasing electricity requirements. Modi pointed to India’s expansion of solar generation to more than 160 GW, alongside plans to expand nuclear energy and develop small modular reactors, arguing that reliable power will be important for semiconductor plants and AI data centers.
India is also expanding its chip-design workforce. Modi said about 70,000 engineering students have been trained toward a target of 100,000 and urged Indian researchers at home and abroad to work on advanced technologies in the country.
SEMICON India 2026 runs from September 17 to 19 at Yashobhoomi in New Delhi under the theme “Silicon to Systems, Building the Ecosystem.”
The fifth edition has more than 600 exhibitors, including around 300 international companies, according to the government.
“India is taking every step needed to become a preferred destination for the semiconductor industry,” Modi said.
