India Launches Semiconductor Mission 2.0 to Strengthen Domestic Chip Manufacturing

February 2026 — The Indian government has announced Semiconductor Mission 2.0, a renewed national initiative aimed at accelerating the country’s semiconductor manufacturing and design ecosystem. The program builds on earlier efforts and reflects India’s ambition to become a key player in the global semiconductor supply chain.

Focus on Self-Reliance and Scale

Semiconductor Mission 2.0 places strong emphasis on expanding local chip fabrication, packaging, and testing capabilities. The initiative is designed to reduce India’s dependence on imported semiconductors while supporting the growing demand from sectors such as electronics, automotive, telecommunications, artificial intelligence, and defence.

The government has earmarked fresh funding to support new fabrication plants, advanced packaging units, and semiconductor design startups.

Boost for Manufacturing and Jobs

The new mission is expected to attract large-scale investments from global chipmakers as well as domestic technology companies. By improving incentives and streamlining approvals, the government aims to accelerate project execution and create thousands of high-skilled jobs across engineering, manufacturing, and research.

Industry experts believe the initiative could significantly strengthen India’s position as a manufacturing hub for next-generation electronics.

Support for Innovation and R&D

Beyond manufacturing, Semiconductor Mission 2.0 also prioritizes chip design, research, and talent development. The program includes support for academic institutions, research labs, and startups working on semiconductor innovation, helping build a sustainable long-term ecosystem.

This focus on R&D is expected to encourage indigenous intellectual property creation and reduce reliance on foreign designs.

Strategic Importance

Semiconductors are increasingly viewed as critical infrastructure, essential for economic growth and national security. With global supply chains facing uncertainty, India’s push to localize semiconductor production is seen as a strategic move to ensure resilience and stability.

Looking Ahead

With Semiconductor Mission 2.0, India is signaling its long-term commitment to becoming a global semiconductor powerhouse. The success of the initiative will depend on execution speed, private-sector participation, and continued policy support, but the move marks a major step forward in India’s technology and manufacturing journey.