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SEMICON India 2026: Building India’s Semiconductor Ecosystem

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SEMICON India 2026

Source: PIB
GS III: Science and Technology, Indigenization of technology and Infrastructure

Overview

  • SEMICON India 2026 highlighted India’s expanding semiconductor ecosystem, covering indigenous chip design, AI processors, advanced packaging and manufacturing.
  • The Semicon India Programme has approved 12 projects across six states, with investments exceeding ₹1.64 lakh crore, while three facilities have commenced commercial production.
  • Semicon 2.0, with an outlay of ₹1,27,500 crore, focuses on semiconductor design, fabrication, advanced packaging, R&D, materials and skill development.
  • Indigenous semiconductor capabilities can strengthen technological self-reliance, economic growth and national security, while challenges include high costs, import dependence, infrastructure gaps and skill shortages.

Why in the News?

The Ministry of Electronics and Information Technology highlighted India’s growing semiconductor capabilities through SEMICON India 2026, held at Yashobhoomi, New Delhi, from 17 to 19 September 2026.

News in Brief
  • SEMICON India 2026 brought together over 600 exhibiting companies, along with industry leaders, start-ups, academic institutions and policymakers.
  • India’s semiconductor ecosystem is expanding beyond chip design to include manufacturing, advanced packaging, research, materials and system-level applications.
  • Under the Semicon India Programme, 12 semiconductor projects have been approved across six states, involving investment commitments exceeding ₹1.64 lakh crore. Three facilities have commenced commercial production.
  • Semicon 2.0, approved in July 2026 with an outlay of ₹1,27,500 crore, focuses on strengthening the entire semiconductor value chain.
Key Highlights of SEMICON India 2026

Indigenous Chip Design and Computing Capabilities

  •  Centre for Development of Advance Computing  (C-DAC) has developed the AUM HPC-AI Processor and RUDRA-AUM compute node for high-performance computing and artificial intelligence.
  • Indian start-ups and institutions are developing processors, application-specific integrated circuits (ASICs) and system solutions for telecommunications, automotive applications, AI and surveillance.
  • Vervesemi Microelectronics is developing semiconductor solutions for motor control, energy meters and data acquisition, with applications in consumer appliances, electric mobility and drones.

These developments indicate a gradual expansion from chip design towards indigenous computing systems and electronics manufacturing.

RISC-V and Indigenous Processor Development

  • RISC-V is an open-standard Instruction Set Architecture (ISA) that enables the development of customized processors.
  • C-DAC’s indigenous 64-bit RISC-V processor supports high-performance computing and emerging digital applications.
  • InCore Semiconductors develops RISC-V processor intellectual property (IP) and system-on-chip (SoC) design automation tools. Its processor IP has been silicon-proven across customer chips and technology nodes ranging from 180 nm to 16 nm.
  • Aheesa Technology has developed an indigenous internet connectivity device offering speeds of up to 1 Gbps and connecting approximately 64 homes through a single Optical Line Terminal (OLT).
  • It operates on Vihan, an Indian-developed software platform, and uses C-DAC’s 64-bit RISC-V processor.

Indigenous processor development can reduce dependence on foreign intellectual property, enable customized technological solutions and strengthen India’s technological self-reliance.

AI, Vision and Smart Surveillance

  • Netrasemi is an Indian semiconductor start-up developing AI-capable System-on-Chips (SoCs) for secure surveillance, smart sensors, robotics, drones and mobility.
  • It has taped out an indigenously designed AI SoC for CCTV surveillance using a 12 nm process node.
  • The chip integrates AI/ML accelerators, vision processing and video engines.

These technologies support applications in edge computing, machine vision, smart infrastructure, intelligent surveillance and autonomous systems.

Development Across the Semiconductor Value Chain

  • India’s semiconductor ecosystem extends beyond chip fabrication and includes several interconnected activities:
    • Chip design and intellectual property development.
    • Semiconductor fabrication plants (fabs).
    • Semiconductor equipment and raw materials.
    • Assembly, testing, marking and packaging (ATMP).
    • Advanced packaging, research and development.
    • Skilled workforce development and system integration.
  • Developing these capabilities together is essential for building a complete domestic semiconductor ecosystem and connecting indigenous innovation with global semiconductor value chains.
Government Initiatives

Semicon India Programme 

  • The Semicon India Programme supports the development of semiconductor and display manufacturing capabilities in India.
    • Twelve semiconductor projects have been approved across six states.
    • Investment commitments exceed ₹1.64 lakh crore.
    • Three facilities have commenced commercial production.
  • The programme aims to strengthen domestic manufacturing, attract investment and reduce dependence on imported semiconductor technologies.

Semicon 2.0

  • The Union Cabinet approved Semicon 2.0 with an outlay of ₹1,27,500 crore.
  • Its six strategic pillars are:
    • Semiconductor design.
    • Machines and materials.
    • More semiconductor fabrication facilities.
    • Advanced packaging.
    • Research and development.
    • Talent development.
  • The programme builds on the foundation of Semicon 1.0 and adopts a broader ecosystem-based approach.

Design Linked Incentive (DLI) Scheme

  • The DLI Scheme supports domestic semiconductor chip-design projects.
  • Supported areas include:
    • Video surveillance and drone detection.
    • Energy meters and microprocessors.
    • Satellite communications.
    • Broadband and Internet of Things (IoT) SoCs.
  • It aims to promote domestic chip-design capabilities and encourage innovation by Indian companies and start-ups.

Chips to Startup (C2S) Programme

  • The C2S Programme promotes semiconductor design capabilities among students researchers, academic institutions and start-ups.
  • The ChipIN Centre provides access to advanced design tools, fabrication services and specialised training, contributing to the development of a skilled semiconductor workforce.
Significance for India and Challenges
  • Strategic autonomy- Indigenous chip design and manufacturing can reduce vulnerabilities arising from dependence on foreign suppliers.
  • Economic growth- Semiconductor manufacturing can support electronics production, attract investment and generate skilled employment.
  • Digital infrastructure- Domestic processors and SoCs can strengthen telecommunications, broadband, AI and computing infrastructure.
  • National security- Indigenous technologies have applications in defence electronics, surveillance and secure communications.
  • Innovation ecosystem- Collaboration between industry, academia and start-ups can strengthen research, technology development and commercialisation.

Challenges

  • Despite progress, building a comprehensive semiconductor ecosystem involves several challenges:
    • High capital investment and long gestation periods for fabrication facilities.
    • Dependence on specialised equipment, advanced manufacturing technologies and imported materials.
    • Need for continuous research, skilled professionals and technology upgradation.
    • Global competition and the complexity of integrating design, fabrication, packaging and testing.
    • Infrastructure requirements, including reliable electricity, water supply and logistics.
Way Forward and Concluison

SEMICON India 2026 reflects India’s gradual transition from a semiconductor design-focused ecosystem towards a broader system encompassing manufacturing, advanced packaging, research and computing technologies.

Sustained investment, technological innovation, skilled human resources and resilient supply chains will be essential to strengthen India’s semiconductor self-reliance and its integration into global value chains.

UPSC Prelims and Mains Practice Question

With reference to SEMICON India 2026, consider the following statements:

  1. The Chips to Startup (C2S) Programme aims to develop semiconductor design capabilities among students and researchers.
  2. RISC-V is an open-standard instruction set architecture.
  3. The Design Linked Incentive (DLI) Scheme supports domestic semiconductor chip-design projects.
  4. Semiconductor fabrication involves processes such as photolithography, etching and doping.

Which of the statements given above are correct?

A) 1,2 and 3 only

B) 2,3 and 4 only

C) 1, 3 and 4 only

D) 1,2 ,3 and 4

Answer: D) 1,2,3 and 4

Mains Practice Question

Q) Discuss the significance of developing an indigenous semiconductor ecosystem for India’s economic growth, technological self-reliance and national security. Examine the major challenges and suggest measures to address them. (250 words)

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