India’s semiconductor push began with a ₹76,000 crore programme in 2021 and expanded in 2026 with a separate India Semiconductor Mission 2.0 budget allocation. The original programme backs manufacturing, packaging, chip design, skills and research; the later mission puts added emphasis on equipment, materials, indigenous IP and resilient supply chains. Neither the headline outlay nor the value of approved projects should be mistaken for money already spent or chips already being produced.
What is India’s semiconductor mission?
The Semicon India Programme, launched by the Government of India in December 2021, is a portfolio of incentives and related support intended to build domestic semiconductor and display capabilities. It is not a single factory project or a promise that India will make every kind of chip domestically. Its scope spans semiconductor and display fabrication, compound semiconductors, assembly and packaging, chip design, workforce development and research collaborations.
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In the Union Budget for 2026–27, the government announced India Semiconductor Mission 2.0 (ISM 2.0), with an initial allocation of ₹1,000 crore for that financial year. The new mission emphasizes equipment, materials, indigenous intellectual property, resilient supply chains, research, training and advanced manufacturing. That allocation is distinct from the original programme’s outlay; it is not a revised total for the 2021 programme.
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|---|---|---|
| ₹76,000 crore | Government of India’s announced outlay for the original Semicon India Programme, launched in December 2021. | It is not a tally of funds already disbursed or a measure of completed projects. |
| ₹1,000 crore | Initial allocation announced for India Semiconductor Mission 2.0 for FY 2026–27 in the Union Budget. | It is not the original programme’s outlay or the total value of all semiconductor investment in India. |
| About ₹1.64 lakh crore | Investment commitments associated with 12 approved projects, as reported by the Government of India in June 2026. | It is not evidence that this amount has been spent or that all 12 projects are operating. |
How does the programme support manufacturing and design?
The 2021 cabinet-approved schemes use different forms of support for different kinds of projects. The maximum percentages below are scheme terms, not automatic payments: applicants must qualify, and actual support depends on the relevant scheme conditions and approved costs.
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- Semiconductor and display fabs: fiscal support of up to 50% of eligible project cost.
- Specified compound-semiconductor, silicon-photonics, sensor/MEMS and semiconductor ATMP/OSAT projects: support set at 30% of capital expenditure for approved units. ATMP and OSAT refer to semiconductor assembly, testing, marking and packaging operations.
- Design Linked Incentive (DLI): product-design support of up to 50% of eligible expenditure, plus a product-deployment incentive of 6%–4% of net sales over five years, under the scheme’s terms.
The manufacturing incentives address the capital-intensive facilities and processes needed to make or package devices. DLI addresses a different part of the chain: helping eligible companies develop chip and system-on-chip (SoC) products, access design tools and move designs toward deployment. The two are complementary, not interchangeable.
Which projects have been approved, and what do the counts mean?
Project counts depend on the reporting date and the category being counted. A March 2026 government update described ten approved manufacturing units. A June 2026 Government of India release reported 12 approved projects, comprising one semiconductor fab, two compound-semiconductor fabs and nine packaging units, with about ₹1.64 lakh crore in investment commitments. These are different dated snapshots; the March count should not be added to the June count.
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The June figures establish approvals and commitments, not completion. In the earlier March snapshot, the government said one of the ten approved manufacturing units had begun commercial production and three were in pilot production. Those status figures belong to the March report and should not be read as a complete status update for all 12 projects later reported in June.
The portfolio is broader than advanced silicon logic
India’s approved project mix includes wafer fabrication, compound semiconductors and packaging. The government’s 2025 cabinet announcement, for example, covered a silicon-carbide compound-semiconductor project in Odisha, advanced glass-substrate and heterogeneous packaging in Odisha, discrete semiconductor expansion in Punjab, and system-in-package manufacturing in Andhra Pradesh. The parliamentary annexure for an earlier set of ten approvals lists proposed capacities and investments for those projects. Such capacity figures describe plans, not actual output, and that ten-project annexure predates the June 2026 count of 12.
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This distinction matters when interpreting claims about “chip manufacturing.” A wafer fab processes wafers into semiconductor devices; compound-semiconductor facilities work with materials such as silicon carbide rather than only conventional silicon; packaging units assemble and connect chips or chip components into usable products. A packaging investment adds domestic capability, but it is not the same thing as a new wafer fab.
What has India reported on chip design and skills?
Government-reported design figures show activity beyond factory approvals, but they describe different kinds of support and should retain their dates. In a March 2026 update, the Ministry of Electronics and IT reported 24 approved chip and SoC design projects with a total project value of ₹900 crore. It also reported that 105 fabless design companies had access to infrastructure, including electronic design automation (EDA) tools, and that students at 315 universities had access to advanced EDA tools.
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- WIRELESS PROTOCOLS: Designed for 2.4GHz wireless applications including Bluetooth Low Energy and 802.15.4-based protocols
The same March update said seven chips had been fabricated from 16 taped-out designs. A tape-out is the handoff of a completed design for fabrication; it is a milestone, but it is not by itself proof of commercial production or sales. The government cited supported application areas including video surveillance, drone detection, energy metering, microprocessors, satellite communications, broadband and IoT SoCs.
A separate June 2026 PIB report describing status as of March said 24 companies had received DLI fiscal support, 105 applicants had EDA-tool support, and seven chips had been fabricated from 16 tape-outs. These are government-reported programme outputs. The wording and unit of count differ across the March and June summaries, so the company, project, university and applicant figures should not be combined into a single total.
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For newcomers, the official Introduction to Semiconductors course is presented as free, self-paced microlearning and a joint initiative of India Semiconductor Mission, MeitY and Intel India. It is an educational resource, not a measure of programme results.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the announced figures do—and do not—show
The available official figures establish the programme’s announced scope, approved projects, committed investment and selected early production and design outputs. They do not, on their own, establish how much committed investment has been realized, whether projects will meet their planned capacity or schedule, how much domestic chip demand they will serve, or the programme’s economic additionality compared with what would have happened without the incentives.
- Outlay is not expenditure: the ₹76,000 crore figure is the original programme outlay, not proof the full amount has been paid out.
- Commitment is not completion: the June 2026 investment figure concerns commitments attached to approved projects, not a verified total of money spent.
- Capacity is not output: proposed project capacities cannot be presented as chips already produced.
- Pilot is not commercial production: the March 2026 status report distinguishes facilities in pilot production from the one it said had begun commercial production.
- Design milestones are not market outcomes: tool access, approved design projects and fabricated chips are meaningful outputs, but they do not by themselves demonstrate widespread commercial adoption.
For these reasons, the best reading of India’s semiconductor mission is as a long-term attempt to build connected capabilities—from chip design and skills through fabrication and packaging—with early projects moving at different stages. The 2026–27 announcement adds a new policy focus, but its ₹1,000 crore initial allocation remains separate from the original programme and from project investment commitments.
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