‘Semicon 2.0 draws up to $12 billion in investment proposals’: IT minister Ashwini Vaishnaw | Business News
3 min readNew DelhiSep 17, 2026 06:56 PM IST
The government has received investment proposals between $11-12 billion under the second iteration of India’s chip manufacturing programme, spanning several key sectors in the semiconductor supply chain, Union Electronics and IT Minister Ashwini Vaishnaw said on Thursday
Addressing the reporters at the Semicon India 2026 conference, Vaishnaw said the commitments include investments across semiconductor equipment, materials, gases, chemicals and substrates.
The investments are expected to come over the next two to three years, he said, without mentioning the names of the companies that have shown an interest in investing in India.
“The investment numbers that we are seeing today are of the order of Rs 1 lakh crore, or about $11-12 billion. Many of them don’t want us to take their names, but they will make those investment announcements after approvals from their board and shareholders,” Vaishnaw said.
Key economic driver
To be sure, these proposals have been received under the Rs 1.27 lakh crore India Semiconductor Mission 2.0, which offers government subsidies for several functions across the chip ecosystem, including design, broader supply chain, and manufacturing and assembly.
India has identified semiconductors as a key economic driver, with New Delhi keen on building a domestic base for the technology as a national priority. India is also witnessing rapidly rising semiconductor demand. It is projected to reach $110 billion by FY30 and exceed $200 billion by FY35, while domestic manufacturing remains at a nascent stage. India spent almost $150 billion on semiconductor product imports between FY17-FY25. Imports grew at a CAGR of 23% during this period, and if this trend continues, annual imports could reach $240 billion by 2035. The government, therefore, has identified building a comprehensive semiconductor ecosystem as an urgent national priority.
Global Semicon companies to invest in India
At Semicon India 2026, fresh investments were announced from two of the world’s biggest semiconductor equipment companies. Applied Materials announced its India Vision 2035, under which it will invest $5 billion over the next decade, including on R&D, expanding the domestic semiconductor supply chain and developing talent. The company also announced a new 140-acre advanced semiconductor research park, and said it aims to expand its India-based supply-chain capacity ten-fold by 2035.
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Lam Research, meanwhile, has announced plans to invest around Rs 10,000 crore in India over the next several years to establish its first silicon-component manufacturing facility in the country and expand its advanced R&D operations. The proposed facility will cover silicon ingot production and processing for advanced semiconductor technologies, while building on Lam’s existing engineering and R&D presence in India.
A series of agreements were also announced alongside the investment commitments.
Tata Electronics signed an agreement with the Singapore-based industrial real estate developer Ascendas First Space to develop a 363-acre vendor park aimed at building the supplier ecosystem around its semiconductor fab in Dholera, Gujarat. It also signed agreements with Japan’s Fujifilm for localisation of critical semiconductor materials and JSR Corporation for photoresists and advanced chemicals for the Dholera fab.
Source: indianexpress.com