Prime Minister Narendra Modi on Thursday (September 17, 2026) pitched India as a trusted destination for global chip manufacturing and said the government is taking all measures to ensure the industry’s success through enabling policies and frameworks.
On Thursday (September 17, 2026), Applied Materials announced $5 billion in investments under Vision 2035 to integrate India’s semiconductor ecosystem into the global value chain.
India is seeking to build a complete semiconductor ecosystem, expanding beyond chip design and assembly to fabrication, advanced packaging, equipment, materials, research and talent as it looks to strengthen electronics manufacturing and reduce dependence on global supply chains. Backed by billions of dollars in incentives, New Delhi is courting global manufacturers and leveraging its engineering talent, vast consumer market and strategic position as it seeks to build a full-stack industry spanning chip design, fabrication, packaging and testing.
So far, 12 chip-making projects have been approved, and the next phase will see the numbers increase further, the PM noted. India Semiconductor Mission 2.0 expanded outlay to $13.5 billion from $8 billion in the first phase, he said, adding, “Be it policies, regulatory framework…whatever is needed for you [manufacturers] to succeed, government is taking all steps and efforts to ensure that.
The world needs new and trusted locations for chip manufacturing, and India is preparing itself for this, he said. The Indian economy is expanding rapidly, and so is the world’s confidence in India, he said, citing Q1 GDP growth and Japanese rating agency JCRA’s India rating upgrade.
