India's Semiconductor Vision: 10 APPROVED manufacturing plants! Name, location and why they matter | Explained

Budget 2026: The Union Budget 2026-27 marked a major moment for India's technology sector with the announcement of the India Semiconductor Mission 2.0. The new phase signals a clear policy push to deepen domestic semiconductor capabilities at a time when chips are fundamental to every critical digital and industrial system.

According to government ISM 2.0 will focus on manufacturing semiconductor equipment and materials in India, designing full-stack Indian semiconductor intellectual property, and strengthening both domestic and global supply chains. A provision of Rs 1,000 crore has been allocated for ISM 2.0 for FY 2026-27, with an emphasis on industry-led research and training centers to foster technology development and create a future-ready skilled workforce. In this article, we will tell you what has changed in Budget 2026 and why it matters.

Indian semiconductor market to reach USD 100-110 billion by 2030

According to industry estimates, the Indian semiconductor market was approximately USD 38 billion in 2023 and USD 45-50 billion in 2024-2025 and is expected to reach USD 100-110 billion by 2030. This expansion is driven by the national vision of "Make in India" and "Make for the World", positioning India as a manufacturing hub and a global supplier, as per the government of India.

This mission is supported by a Rs 76,000 crore incentive framework, which provides financial assistance of up to 50 per cent for silicon fabs, compound semiconductor facilities, assembly and testing units, and chip design. As of December 2025, 10 projects across six states, with a total investment of Rs 1.60 lakh crore, have been approved. These include silicon fabrication units, silicon carbide fabs, advanced and memory packaging facilities, and specialised assembly and testing infrastructure. Together, these initiatives are shaping a robust domestic semiconductor ecosystem.

India aims to become one of the world's leading semiconductor nations

By 2029, India is expected to develop the capability to design and manufacture chips to meet approximately 70-75 percent of its domestic needs.

10 APPROVED manufacturing plants! Name, location and why they matter

Anticipated Impact of Semiconductor Programme in 2026–27

Given the increasing global competition and the concentration of advanced chip technology in the hands of a few companies, India's semiconductor program has been revamped. Several countries with established semiconductor ecosystems are offering significant incentives, making it crucial for India to refine its approach. Therefore, the revised program focuses on strengthening financial support for investments in semiconductor manufacturing, display fabrication, and the design ecosystem.

For 2026-27, the total financial outlay for the revamped program aimed at developing the semiconductor and display manufacturing ecosystem in India is Rs 8,000 crore. The program aims to accelerate capital investment, create high-quality jobs, and enhance domestic capabilities in fabrication, packaging, and chip design. The projected outcomes for the year are outlined below.

Projected targets under ISM for 2026–27:

Budget 2026: Why it matters?

Union Minister Piyush Goyal has emphasised transforming India into a global semiconductor hub by reducing foreign dependence through the Rs 76,000 crore Semiconductor Mission. He advocates leveraging AI, strengthening domestic manufacturing via PLI schemes, and fostering US-India partnerships to build resilient supply chains.