Archive · 9 Sep 2026
India Expands Semiconductor Drive To Strengthen Defence Technology
India wants to make more of the computer chips it needs at home.
These chips help military equipment such as drones, missiles and surveillance systems work.
The government announced a new programme called Semicon 2.0 on August 31, 2026.
It will provide ₹1.275 lakh crore to support many parts of the chip industry.
This includes designing chips, making equipment, developing materials and training workers.
Rajendra Chodankar said India is good at putting complex systems together but needs to make more important parts itself.
He said sensors are especially important for defence technology.
Earlier government support helped approve 12 manufacturing units.
Several companies have also started commercial chip production.
India notified the Semicon 2.0 scheme on August 31, 2026, with an outlay of ₹1.275 lakh crore.
The programme supports chip design, equipment, materials, advanced packaging, research and skilled manpower.
The initiative aims to supply critical electronics, sensors and chips for drones, missiles, surveillance systems and other military platforms.
RRP Group Chairman and CEO Rajendra Chodankar said India must move from system integration toward domestic component manufacturing and sensor development.
Under the first semiconductor programme, 12 manufacturing units were approved, while Micron, Kaynes and CG Semi began commercial production.
- Who
- The Government of India, semiconductor companies and industry leader Rajendra Chodankar are central to the initiative.
- What
- India is expanding its semiconductor programme to build a broader domestic chip ecosystem with defence applications.
- When
- The Semicon 2.0 scheme was notified on August 31, 2026; Chodankar said the next three years could be important for progress.
- Where
- India.
- Why
- To develop domestic capabilities in critical electronics, sensors, components and chips used in advanced defence systems.
- Programme
- Semicon 2.0
- Announcement date
- August 31, 2026
- Outlay
- ₹1.275 lakh crore
- Scope
- Chip design, equipment, materials, advanced packaging, research and skilled manpower
- Earlier approvals
- 12 semiconductor manufacturing units involving investments exceeding ₹1.64 lakh crore
- Production
- Micron, Kaynes and CG Semi have begun commercial production
- Design support
- 24 startup and MSME design projects have received financial support