Indian chip manufacturing gets a major boost, Union Cabinet approves 'Semicon 2.0'
New Delhi: The central government has taken a major step towards making India a global semiconductor hub. Under the 'Semicon India Program', launched to promote Indian-designed chips, 12 manufacturing projects with an investment of ₹1.64 lakh crore have been approved so far. Commercial production has also commenced in 3 of these projects.
Building on this success, on July 15, 2026, the Union Cabinet approved 'Semicon 2.0' with a budget of ₹1,27,500 crore. This scheme aims to accelerate the development of Indian-designed chips, expand semiconductor fabrication units (fabs), advanced packaging, and the entire semiconductor ecosystem.
India's Global Partnerships Strengthen
India has taken a significant step towards strengthening the global silicon supply chain by joining the 'Pax Silica' alliance at the 'India AI Impact Summit 2026' with the US and other partner countries.
India's Growing Strength in AI
According to the Stanford Global AI Vibrancy Report 2025, India ranks third globally in terms of AI competitiveness and ecosystem, while it is the second-largest contributor to AI projects on GitHub.
The government is also installing a modern AI compute system at the NIC Data Center, Shastri Park (Delhi) to enhance high-performance AI computing capabilities in the country.
This information was given by Union Minister of State for Electronics and Information Technology Jitin Prasada in the Lok Sabha on August 5, 2026.
