India expects around 200 chip design companies to emerge under its Semicon 2.0 programme as the government expands support for semiconductor design, manufacturing and research. Union Electronics and Information Technology Minister Ashwini Vaishnaw said the new companies could strengthen India’s domestic chip design base. The government is building on the first phase of the India Semiconductor Mission, which supports startups with design tools, funding and technical resources.
Semicon 2.0 Targets Growth in India’s Chip Design Sector
Vaishnaw said India’s existing strength in information technology and global capability centres is now extending into semiconductor design. “We estimate at least 200 chip design companies emerging under Semicon 2.0,” he said during a fireside chat.
Under the first phase of the India Semiconductor Mission, the government focused on reducing the high cost of Electronic Design Automation tools. More than 105 chip design startups received access to advanced EDA tools, which companies use to develop, test and verify semiconductor designs.
The government said 20 of these startups also secured venture capital funding. The funding has helped some firms move beyond early product development and work towards commercial applications. Semiconductor startups are also developing chips for use in different products.
India has also expanded training for semiconductor professionals. Around 70,000 chip-design engineers have received training over the past four years, against a target of 85,000. The government expects this workforce to support chip design, research, manufacturing and related activities.
Semiconductor Plants Begin Commercial Production
India is also increasing domestic semiconductor manufacturing capacity. According to Vaishnaw, five of the 12 semiconductor plants approved under the first phase of the India Semiconductor Mission have started commercial production.
The government is now focusing on applied research and development inside manufacturing plants. Vaishnaw said this work should improve product quality and manufacturing processes. The electronics manufacturing sector has also helped Indian micro, small and medium enterprises build precision manufacturing skills used across electronics, aerospace, defence and semiconductor production.
The government is also working with companies on local production of critical semiconductor equipment and materials. Vaishnaw said Indian companies and overseas partners have started discussions and signed agreements related to machinery and key materials.
He added that semiconductor production facilities will use water recycling systems to reduce fresh water use. The government is also encouraging data centres and manufacturing facilities to use closed-loop cooling systems where possible.
Global Partners Explore Semiconductor Opportunities in India
SEMICON India 2026 brought companies and government representatives from several major semiconductor markets together to discuss investment and supply-chain cooperation. Participants included companies from the United States, Japan, Singapore, South Korea, the Netherlands and Finland.
“The country roundtables are basically showing that companies from those countries can expand their work here,” Vaishnaw said. He added that overseas governments were supporting companies that were exploring opportunities in India.
The India-Singapore Country Roundtable attracted 142 participants and discussed manufacturing, advanced packaging and supply-chain management. The India-Europe session had 139 participants and covered investment, equipment, materials, manufacturing, chip design, research and talent development.
Meanwhile, the India-South Korea Country Roundtable brought together 115 participants. Discussions covered semiconductor manufacturing, materials, advanced packaging, technology, investment and supply chains.
Foreign Secretary Vikram Misri said resilient semiconductor supply chains require trusted international partnerships. He identified reliability, credibility, incentives and value creation as key areas for cooperation while calling for a balance between domestic capabilities and international partnerships.
India’s Semicon 2.0 programme will now focus on expanding chip design, manufacturing, research, equipment production and skilled talent while bringing more domestic and international companies into the semiconductor ecosystem.
