Key Points
- India hosts 7 per cent of global semiconductor GCCs and employs 20 per cent of chip design workforce
- Ten semiconductor units approved with ₹1.6 lakh crore investment commitments in three years
- Seven chips fabricated including designs at advanced 12nm node at TSMC foundry
India now employs nearly 20 per cent of the global semiconductor chip design workforce and hosts about 7 per cent of the world’s semiconductor-focused Global Capability Centres, Minister of State for Electronics and IT Jitin Prasada told the Rajya Sabha on Friday.
The disclosure came as the government detailed progress under its Semicon India Programme, which has attracted investment commitments of approximately ₹1.6 lakh crore since its launch three years ago. Ten semiconductor manufacturing units have received approval, including two fabrication plants and eight assembly and testing facilities.
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For the thousands of engineers working at multinational design centres across Bengaluru, Hyderabad and other tech hubs, the numbers reflect a workforce that has moved beyond support roles.
According to the Ministry of Electronics and Information Technology of India (MeitY), Indian engineers are now contributing to the design of chips at the most advanced manufacturing processes available, including 2 nanometre technology, which refers to the size of transistors on a chip; smaller nodes allow more processing power in less space.
Semicon India Programme sees first commercial production
The Semicon India Programme, launched to build domestic semiconductor manufacturing capacity, has reached operational milestones. One approved unit has begun commercial production, while three others are conducting pilot production runs to test manufacturing processes before scaling up.
The approved projects include two fabs, which are fabrication plants that manufacture silicon wafers containing integrated circuits. The remaining eight are ATMPs and OSATs; these are facilities that take manufactured chips and package them for use in electronic devices, handling assembly, testing and final preparation.
Most approved projects incorporate pilot lines for product testing and qualification. Some proposals also include dedicated research and development activities, though the government did not specify which units or the scale of R&D investment.
Design scheme supports 24 chip projects worth ₹900 crore
Alongside manufacturing, the government’s Design Linked Incentive Scheme supports Indian companies developing semiconductor products. The scheme covers integrated circuits, chipsets and System on Chips, which are single chips that combine multiple computing functions that would previously have required separate components.
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Twenty-four projects have been approved under this scheme, with a combined project value of ₹900 crore. These projects address sectors including video surveillance, drone detection, energy metering, microprocessors, satellite communications and broadband connectivity.
Fourteen of the 24 approved companies have raised venture capital funding, with ₹650 crore secured by Indian semiconductor startups collectively. Seven chips have been successfully fabricated from 16 designs sent for manufacturing across multiple foundries, including advanced 12 nanometre process technology at TSMC, the Taiwanese contract manufacturer.
The programme extends into academia, where 315 universities now have access to advanced EDA tools. Electronic Design Automation tools are specialised software that engineers use to design and verify semiconductor circuits before manufacturing. Students have logged more than 1.85 crore hours of tool usage.
From 146 chip designs submitted by 49 institutions, the government’s Semiconductor Laboratory in Chandigarh has fabricated and packaged 94 student-designed chips. Additionally, 105 fabless chip design companies, which are firms that design chips but outsource manufacturing, have received infrastructure support totalling 60 lakh hours of tool access.
Global Capability Centres, the research and development arms that multinational corporations operate in India, form a significant part of this design workforce. These centres handle chip design, verification and development work for products sold worldwide.
Budget announces expanded mission
Building on the existing programme, the Union Budget 2026-27 announced India Semiconductor Mission 2.0. The expanded mission will cover semiconductor equipment and materials, design capabilities, Indian intellectual property development and supply chain strengthening.
The Department of Science and Technology is implementing two additional initiatives to support research. The Anusandhan National Research Foundation supports academic research, industry collaboration and translational research across priority areas including artificial intelligence and deep technology.
Your Questions, Answered
How many semiconductor units has India approved under the Semicon India Programme?
Ten semiconductor units have been approved, including two fabrication plants and eight assembly, testing, marking and packaging facilities. One unit has started commercial production and three are in pilot production.
What percentage of the global chip design workforce does India employ?
India employs nearly 20 per cent of the global semiconductor chip design workforce, according to government data presented in the Rajya Sabha on 13 March 2025.
How much investment has the Semicon India Programme attracted?
The programme has attracted investment commitments of approximately ₹1.6 lakh crore over three years since its launch.
What is India Semiconductor Mission 2.0?
Announced in Union Budget 2025-26, Mission 2.0 expands the semiconductor programme to cover equipment, materials, design capabilities, Indian intellectual property development and supply chain strengthening.
