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16 July 2026

From Electronics Manufacturing to the Chip Economy: India Lays the Foundation for Semiconductor Self-Reliance

India’s decade-long electronics manufacturing push has increased production nearly seven-fold, exports eleven-fold and created the world’s second-largest mobile phone manufacturing ecosystem. The government now positions these gains as the industrial foundation for Semicon India Programme 2.0 and a complete domestic semiconductor ecosystem

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Key Details

Sustained investments in electronics manufacturing have created the foundations required for India’s long-term semiconductor ambitions.

Theme

Key Development

Electronics manufacturing

Production increased from ₹1.90 lakh crore (2014–15) to ₹13.11 lakh crore (2025–26), while exports reached ₹4.24 lakh crore.

Mobile manufacturing

India became the world’s second-largest mobile phone manufacturer, with production reaching ₹6.27 lakh crore and exports ₹2.60 lakh crore.

Semiconductor ecosystem

12 semiconductor projects approved across six states, with three facilities already in commercial production.

Domestic capability

Domestic value addition increased from 15% to 23%, supported by over 40 component manufacturers.

Talent & employment

Around 25 lakh jobs created, while 68,000+ students have received semiconductor training through Chips to Startup (C2S).


Electronics Manufacturing Has Become India’s Launchpad for Semiconductors

Over the past decade, India has transformed its electronics manufacturing sector through initiatives such as the National Policy on Electronics, SPECS, EMC 2.0 and PLI schemes.

Electronics production has increased nearly seven-fold to ₹13.11 lakh crore, while exports have grown more than eleven-fold to ₹4.24 lakh crore. Mobile phone manufacturing has emerged as the sector’s principal growth engine, enabling India to become the world’s second-largest mobile phone manufacturer and a major participant in global electronics value chains.

The government argues that this manufacturing scale has created the industrial ecosystem required to support the country’s semiconductor ambitions.


India Is Expanding Beyond Electronics Assembly

Building on this manufacturing base, India is now seeking to develop capabilities across the semiconductor value chain rather than focusing only on electronics assembly.

Under the Semicon India Programme, 12 semiconductor projects have been approved across six states, covering silicon fabs, compound semiconductor facilities, display fabs and ATMP/OSAT units. Three facilities established by Micron, Kaynes Semicon and CG Power have already commenced commercial production, signalling the transition from policy planning to domestic manufacturing.

Semicon India Programme 2.0 extends this strategy through six strategic pillars spanning chip design, equipment and materials, fabrication, advanced packaging, research and development, and talent development to build a complete semiconductor ecosystem.


Talent and Domestic Value Addition Become Strategic Priorities

Alongside manufacturing expansion, the government highlights continued progress in strengthening domestic value addition.

Domestic value addition in electronics manufacturing has increased from 15% to 23%, while more than 40 major component manufacturers have established or expanded operations in India.

The sector has generated around 25 lakh jobs, while the Chips to Startup (C2S) programme has deployed EDA tools across 320 academic institutions, trained 68,000+ students, and introduced semiconductor curricula in 500+ engineering colleges.



What is the Semicon India Programme?

The Semicon India Programme is the Government of India’s flagship initiative to develop a complete domestic semiconductor ecosystem. It supports investments across chip design, semiconductor fabrication, advanced packaging (ATMP/OSAT), semiconductor materials, manufacturing equipment, research and workforce development to strengthen India’s technological capabilities and reduce dependence on imported semiconductor supply chains.


Policy Relevance

  • Demonstrates how a decade of electronics manufacturing expansion is being leveraged to support India’s semiconductor ambitions, linking industrial scale with technological self-reliance.

  • Highlights the strategic shift from assembly-led manufacturing towards higher domestic value addition through chip design, fabrication, semiconductor materials, advanced packaging and R&D.

  • Reinforces the importance of building an integrated semiconductor ecosystem, where manufacturing, supplier networks, skilled talent and innovation capabilities develop together rather than in isolation.

  • Shows that industrial capability depends not only on factories but also on design talent, component ecosystems and workforce development, strengthening India’s long-term competitiveness in global technology value chains.

  • Complements Semicon India Programme 2.0 by illustrating the industrial foundation on which the next phase of semiconductor policy is being built.


Relevant Question for Policy Stakeholders: What will determine whether India’s electronics manufacturing ecosystem can support long-term leadership in the global semiconductor industry?


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