• India is developing an integrated semiconductor and Artificial Intelligence (AI) ecosystem to strengthen technological self-reliance, build resilient supply chains, promote innovation, and establish itself as a leading global technology hub. The initiative is part of India’s broader strategy to move beyond being a technology consumer and become a major centre for technology design, manufacturing, research, and innovation.

    India’s Semiconductor Ecosystem

    ¨     The India Semiconductor Mission (ISM) was launched in December 2021, with the Semicon 1.0 programme receiving an outlay of ₹76,000 crore to build India’s semiconductor ecosystem covering chip design, fabrication, packaging, testing, equipment, materials and skilled talent.

    ¨     Semicon 2.0 was approved in July 2026 with an outlay of ₹1,27,500 crore, expanding the focus to chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging, research and development, and talent development.

    ¨ Manufacturing and Design Capabilities: 12 semiconductor projects have been approved across six states, involving investment commitments of more than ₹1.64 lakh crore, with three facilities already commencing commercial production.

    ¨    The projects cover silicon and compound semiconductor fabrication, display fabrication and advanced packaging, supporting sectors such as automobiles, telecommunications, aerospace, power electronics and consumer electronics.

    ¨   Indigenous Chip Design: The Design Linked Incentive (DLI) Scheme was launched in December 2021, while the Chips to Start-up (C2S) Programme was launched in 2022 to strengthen indigenous semiconductor design and skilling.

    ¨     Seven chips have been successfully fabricated from 16 tape-outs, including designs at advanced 12-nanometre nodes.

    ¨ Global Partnerships: India’s semiconductor ambitions are supported by partnerships with the United States, Japan, Singapore, the Netherlands, Germany and the European Union.

    ¨     Semicon India 2025 brought together more than 350 exhibitors and participants from 48 countries and regions, with 12 Memorandums of Understanding announced.

    India’s Artificial Intelligence Ecosystem

    ¨  The IndiaAI Mission was approved in March 2024 with an outlay of ₹10,371.92 crore over five years to build a robust and inclusive AI ecosystem.

    ¨ The Mission has seven pillars covering AI compute, foundation models, AI datasets, application development, future skills, startup financing, and safe and trusted AI.

    ¨ AI Compute and Infrastructure: Shared computing capacity has expanded to 45,000+ GPUs, providing affordable access to high-performance computing for Indian startups, researchers and academia and helping democratise AI innovation.

    ¨  AI-ready Data and Multilingual AI: AIKosh provides access to AI-ready datasets and AI models, while Bhashini provides multilingual datasets and language technologies to support AI applications across India’s linguistic diversity.

    ¨Indigenous AI Capabilities: India is supporting indigenous foundation models, including initiatives such as BharatGen, to develop multilingual and multimodal AI suited to Indian languages, needs and contexts.

    ¨   Responsible AI, Research and Skills: Under the Safe & Trusted AI pillar, projects address bias, deepfakes, privacy, explainability and AI risks, while 58 Artificial Intelligence Centres of Excellence and 543 Data & AI Labs are being developed to strengthen AI research and skills.

    Significance of the Semiconductor & AI Revolution

    ¨  Technological Self-Reliance and Resilience: Domestic semiconductor manufacturing, indigenous chip design and AI capabilities can reduce foreign dependence and strengthen supply-chain resilience.

    ¨  Strategic and Economic Significance: Semiconductors are critical for key sectors, while AI is increasingly important for research, innovation, governance and public-service delivery.

    ¨   Innovation and Employment: Access to EDA tools, GPUs, datasets, AI infrastructure and research facilities can lower entry barriers and create high-value employment.

    ¨     Global Technology Leadership: Integrating chip manufacturing, indigenous design, advanced computing, AI models, data and research can strengthen India’s technological capabilities and support the vision of Viksit Bharat.