India has approved 12 semiconductor manufacturing projects under the India Semiconductor Mission with an investment pipeline of nearly Rs 1.64 lakh crore. The government is also expanding AI infrastructure through the IndiaAI Mission, supporting chip design, indigenous manufacturing, AI models and a nationwide innovation ecosystem.

Key Highlights

• 12 semiconductor projects approved with an investment pipeline of Rs 1.64 lakh crore.
• India Semiconductor Mission 2.0 to strengthen chip manufacturing, equipment and supply chains.
• IndiaAI Mission has established a shared compute facility with over 45,000 GPUs.
• Electronics sector has grown to Rs 13 lakh crore, making electronics India’s third-largest export.

India has taken another major step towards becoming a global semiconductor and artificial intelligence (AI) hub by approving 12 semiconductor manufacturing projects under the India Semiconductor Mission (ISM), with an investment pipeline of approximately Rs 1.64 lakh crore.

According to an official fact-sheet released by the government, the approved projects include one semiconductor fabrication unit, two compound semiconductor fabrication units and nine semiconductor packaging units. These investments are expected to strengthen India’s domestic semiconductor manufacturing capabilities while reducing dependence on imports.

The momentum is set to continue with India Semiconductor Mission 2.0, announced in the Union Budget 2026-27. The next phase of the programme will focus on semiconductor equipment, critical materials, indigenous intellectual property, advanced manufacturing technologies and resilient global supply chains, helping India become a competitive player in the global chip industry.

India is also witnessing rapid progress in semiconductor design. Under the Design Linked Incentive (DLI) Scheme, 24 semiconductor design projects are currently being supported. In addition, 105 companies have received access to advanced chip design tools, while 23 chip tape-outs have been successfully completed at various global foundries, including advanced technology nodes. This reflects the country’s growing expertise in semiconductor research, innovation and design.

Alongside semiconductor manufacturing, the government continues to expand the IndiaAI Mission, which has been approved with an outlay of more than Rs 10,372 crore. One of its biggest achievements is the creation of a shared national compute facility with over 45,000 GPUs, providing researchers, startups and institutions with access to large-scale computing resources needed for AI development.

The government is also supporting 15 Large Language Models (LLMs) and Small Language Models (SLMs) covering speech, text and vision applications. Through the AI Kosh platform, developers and researchers now have access to more than 12,519 datasets, 307 AI models and 20 AI toolkits, making advanced AI resources widely available across the country.

To ensure inclusive AI development, 27 Data and AI Labs have been established across Tier-2 and Tier-3 cities, while 684 fellowships have been awarded to students. The YUVA AI programme has already trained 8.4 million learners, significantly expanding India’s AI talent pool. Additionally, 18 Centres of Excellence have been established, and 20 Indian AI startups have received support for capacity building.

The government noted that the convergence of AI and semiconductor investments is transforming India’s electronics manufacturing ecosystem. The sector has now grown into a Rs 13 lakh crore industry, with electronics emerging as India’s third-largest export category. India has also become the world’s second-largest mobile phone manufacturer, while expanding production of AI-enabled data centre components, 5G equipment and advanced networking hardware that integrate the country into global technology supply chains.

Conclusion

The approval of 12 semiconductor manufacturing projects and the continued expansion of the IndiaAI Mission underline India’s long-term vision of becoming a global technology powerhouse. By investing in chip manufacturing, AI infrastructure, research, innovation and skilled talent, the country is strengthening its position in next-generation technologies while creating new opportunities for employment, exports and economic growth.

FAQ Section