Pratidin
Science and technology18 September 2026PIB, Event

SEMICON India 2026 opens with a push from design to systems

From fabs to packaging, India wants the whole chip chain.

Published 18 September 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work

Prime Minister Narendra Modi inaugurated the fifth edition of SEMICON India at Yashobhoomi in New Delhi, coinciding with Vishwakarma Diwas. The event is organised by the India Semiconductor Mission (ISM) under MeitY together with SEMI, the global electronics supply chain industry association, with the theme 'Silicon to Systems: Building the Ecosystem'.

A 12-inch silicon wafer.
A 12-inch silicon wafer. Peellden, CC BY-SA 3.0, via Wikimedia Commons

More than 500 companies from over 20 countries took part, covering materials, chip making, packaging and system integration, with pavilions for startups and workforce development. The second phase of the India Semiconductor Mission, with about $13.5 billion of support, focuses on semiconductor equipment, speciality gases, silicon photonics and advanced 3D packaging.

On skills, over 70,000 engineering students have been trained on electronic design automation tools against a target of 1 lakh. The government is pitching India as a trusted destination in the global 'China+1' diversification of chip supply chains.

Practise this in the app: flashcards, quiz and a timed answer
Prelims

Prelims facts

  • The India Semiconductor Mission was set up in December 2021 with an outlay of ₹76,000 crore.
  • SEMICON India is organised by the ISM under MeitY together with SEMI, a global industry association.
  • The chip value chain includes design, fabrication (fabs), assembly, testing and packaging (ATMP/OSAT).

Quick recall

Who organises SEMICON India?
The India Semiconductor Mission under MeitY, with SEMI, the global electronics industry association.
Which edition was SEMICON India 2026?
The fifth.
What was the theme of SEMICON India 2026?
'Silicon to Systems: Building the Ecosystem'.
How many companies took part?
More than 500 from over 20 countries.
When was the India Semiconductor Mission set up, and with what outlay?
In December 2021, with ₹76,000 crore.
What does ISM Phase 2 focus on?
Semiconductor equipment, speciality gases, silicon photonics and advanced 3D packaging, with about $13.5 billion of support.
How many students have been trained on chip design tools?
Over 70,000, against a target of 1 lakh.
What does ATMP/OSAT mean?
Assembly, testing, marking and packaging / outsourced semiconductor assembly and test.

Prelims practice question

The India Semiconductor Mission functions under which ministry?

  1. Ministry of Science and Technology
  2. Ministry of Electronics and Information Technology
  3. Ministry of Heavy Industries
  4. Ministry of Commerce and Industry
Show answer

Answer: (b) Ministry of Electronics and Information Technology. ISM is a division within MeitY's Digital India Corporation.

Use this in UPSC Mains: previous-year questions

Recurring theme: Semiconductor manufacturing, industrial policy and supply-chain resilience

  1. 2025 · GS3 · 15 marksAnswers it directlyUse it in the body

    India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India? Mention the salient features of the India Semiconductor Mission.

    How to use this

    Supplies ISM's features, its second-phase priorities and the industry's main challenges.

    • The India Semiconductor Mission was set up in December 2021 with ₹76,000 crore; its second phase, with about $13.5 billion, targets equipment, speciality gases, silicon photonics and advanced 3D packaging.
    • Over 70,000 engineering students have been trained on electronic design automation tools against a target of 1 lakh.
    • List the challenges: costly, slow-to-viability fabs, ultra-pure water and uninterrupted power, imported gases and equipment, and scarce fab workers.
  2. 2024 · GS2 · 10 marksCovers one partUse it in the example

    'The West is fostering India as an alternative to reduce dependence on China's supply chain and as a strategic ally to counter China's political and economic dominance.' Explain this statement with examples.

    How to use this

    Gives the semiconductor supply chain as an example of India positioning itself as a China+1 alternative.

    • The government is pitching India as a trusted destination in the global 'China+1' diversification of chip supply chains.
    • SEMICON India 2026, organised by ISM with the global association SEMI, drew more than 500 companies from over 20 countries.
    • Note India's large design talent base, with many global firms already designing chips in India.
  3. 2015 · GS3 · 12.5 marksCovers one partUse it in the example

    'Success of 'Make in India' programme depends on the success of 'Skill India' programme and radical labour reforms.' Discuss with logical arguments.

    How to use this

    Shows that a high-tech manufacturing push depends on skilled manpower, linking Make in India to Skill India.

    • Over 70,000 engineering students have been trained on electronic design automation tools, against a target of 1 lakh.
    • SEMICON India 2026 included pavilions for workforce development, under the theme 'Silicon to Systems: Building the Ecosystem'.
    • Note that skilled workers for fab operations are scarce, and call for training workers at scale.

Mains practice question

Discuss India's opportunities and challenges in building a semiconductor ecosystem. (150 words)

Model answer

Semiconductors underpin electronics, vehicles, defence and AI. The India Semiconductor Mission (2021) supports fabs, assembly and design.

Opportunities

  • Global China+1 diversification by chip firms.
  • A large design talent base; many global firms design chips in India.
  • Growing domestic demand for electronics and EVs.
  • Approved projects in fabrication and ATMP/OSAT.

Challenges

  • Capital and time: fabs cost billions and take years to become viable.
  • Utilities: need ultra-pure water and uninterrupted power.
  • Supply chain: speciality gases, chemicals and equipment are imported.
  • Skilled workers for fab operations are scarce.
  • Competition from established hubs with deep subsidies.

Way forward

Focus on packaging and mature nodes first, build supplier clusters, expand design-linked incentives and train workers at scale.

Building a chip ecosystem is a long game; consistent policy is the most important input.

The basics

Why this matters

Semiconductors power everything from phones to missiles. Supply is concentrated in a few places, which makes chips a strategic risk. India is spending heavily to build chip manufacturing, and SEMICON India 2026 showcased that push.

$13.5 billion
Support planned under the second phase of the India Semiconductor Mission
Focused on equipment, speciality gases, photonics and advanced packaging.

How a chip is made

Each stage needs different capabilities.

The chip value chain
  1. 1DesignIndia's strength.
  2. 2FabricationWafers made in clean-room fabs.
  3. 3Assembly and testingChips packaged and checked (ATMP/OSAT).
  4. 4SystemsBuilt into devices.

India's position

India is strong at one end and weak in the middle.

Strengths and gaps
Strengths
  • Large chip design workforce
  • Growing electronics assembly
  • Policy support
vs
Gaps
  • Few fabs
  • Imported equipment and gases
  • Ultra-pure water and power needs

How we got here

Policy has moved quickly.

India's chip push
  1. Dec 2021India Semiconductor Mission with ₹76,000 crore
  2. 2022First SEMICON India
  3. 2024-25Fab and packaging projects approved
  4. Sep 2026Fifth SEMICON India

What comes next

The India Semiconductor Mission now targets Semiconductor fabrication and Advanced packaging, while companies look for China plus one locations.

You now know

  • The India Semiconductor Mission began in December 2021 with ₹76,000 crore.
  • ISM Phase 2 targets equipment, gases, photonics and advanced packaging.
  • SEMICON India 2026 was the fifth edition, with 500+ companies.
  • India is strong in chip design but weak in fabrication.

Go deeper

In one line: SEMICON India showcased India's push to build the whole chip supply chain, from design to packaging, with a second phase of government support.

Why it matters for UPSC

GS3 (science and technology, industrial policy). Semiconductors are central to supply-chain security and the 'China+1' shift.

The core idea

Making a chip involves design, fabrication in a clean-room 'fab', then assembly, testing and packaging. India is strong in chip design but has had almost no fabrication or packaging. The India Semiconductor Mission offers subsidies to attract fabs and packaging units, and its second phase targets the harder parts: equipment, gases and advanced packaging. The big challenges are huge capital costs, ultra-pure water and power, imported inputs and skilled workers.

Numbers and dates to remember

  • December 2021: ISM set up with ₹76,000 crore.
  • About $13.5 billion: ISM Phase 2 support.
  • 500+ companies from 20+ countries at SEMICON 2026.

Where to go next

In one line: Building fabs is expensive and slow, so India's near-term gains will come from packaging, design and specialised chips.

Why fabs are hard

Billions of dollars in capital, ultra-pure water, stable power, imported equipment and specialised gases, and years to reach good yields.

Where India can win

Mature-node chips for cars and power electronics, Advanced packaging, and design.

Global context

Countries are subsidising chips; the US and EU have their own chip acts. Firms seek China plus one options.

Links

India Semiconductor Mission and Semiconductor fabrication.

Where to go next

India Semiconductor Mission

The policy framework

In one line: The ISM, under MeitY, runs India's programmes to build a semiconductor and display ecosystem.

Launch

December 2021, with an outlay of ₹76,000 crore.

Schemes

Support for fabs, display fabs, compound semiconductors and packaging units, and design-linked incentives.

Phase 2

About $13.5 billion for equipment, gases, photonics and advanced packaging.

Where to go next

Semiconductor fabrication

How chips are made

In one line: Fabrication is making chips on silicon wafers in a clean-room 'fab'.

Process

Photolithography, etching, deposition and doping, repeated in many layers.

Nodes

Measured in nanometres; smaller nodes pack more transistors.

Needs

Huge investment, ultra-pure water, stable power and specialised equipment.

Where to go next

Advanced packaging

The next frontier

In one line: Advanced packaging combines chips in new ways, such as stacking them in 3D, to boost performance.

Why it matters

As shrinking transistors gets harder, packaging adds performance.

Types

2.5D and 3D packaging, chiplets and fan-out designs.

India's opportunity

Packaging needs less capital than fabs and suits India's early stage.

Where to go next

China plus one

Why global firms are diversifying

In one line: China plus one is a business strategy of adding production outside China to reduce risk.

Drivers

Rising costs in China, trade tensions, export controls and pandemic disruptions.

Beneficiaries

India, Vietnam, Malaysia and Mexico.

For India

Opportunities in electronics, chips and pharmaceuticals, if costs and logistics improve.

Where to go next

Take the 18 September 2026 quiz: 30 Prelims-style questions with answers

Syllabus

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