Archive · 16 Sep 2026
India’s Semiconductor Push Targets Global Product Champions Through R&D
India has many skilled engineers who design computer chips.
The country now wants Indian companies to create and own their own chip technologies.
This could help India earn more value from the global semiconductor industry.
A government programme called Semicon 2.0 will support chip design, research, training and manufacturing.
India’s earlier semiconductor mission helped approve 12 manufacturing projects.
More than 100 startups are already developing chips.
These startups need patient investors because chip development can take years and cost a lot of money.
The article says universities, research institutions and companies must work together to turn ideas into successful products.
India aims to convert its semiconductor engineering strength into companies that own proprietary products and intellectual property.
Semicon 2.0 has an approved outlay of ₹1,27,500 crore focused on design, R&D, talent and the wider ecosystem.
India’s first semiconductor mission supported ₹76,000 crore in funding and helped approve 12 manufacturing projects.
More than 100 startups are developing chips, but many must still progress from design services to product ownership and global scale.
The article highlights patient capital, university-industry collaboration and shared infrastructure as essential for building durable semiconductor companies.
- Who
- The Indian government, semiconductor startups, researchers, universities, investors and industry participants.
- What
- A strategy to build Indian semiconductor product companies that develop proprietary technology and intellectual property.
- When
- In the context of Semicon 2.0 and the Union Budget 2026–27.
- Where
- India, with the goal of competing in global semiconductor markets.
- Why
- To move India beyond engineering and design services toward ownership of differentiated semiconductor products, platforms and intellectual property.
- Semicon 2.0 outlay
- ₹1,27,500 crore
- First semiconductor mission outlay
- ₹76,000 crore
- Approved manufacturing projects
- 12 projects with committed investments exceeding ₹1.64 lakh crore
- Projects in commercial production
- Three approved projects have commenced commercial production
- Chip startups
- More than 100 startups are developing chips
- Semicon 2.0 focus
- Chip design, R&D, fabrication, advanced packaging, equipment, materials and talent development
- Key financing requirement
- Patient, risk-tolerant capital capable of supporting long development and commercialisation timelines