India Emerges as Global Hub for Semiconductor Design and R&D
18 March 2026: India has emerged as a global hub for semiconductor design and R&D. The semiconductor development strategy is inspired by Prime Minister’s vision of Atmanirbhar Bharat and Make in India, Make for the World. As part of this strategy, India aims to develop a complete ecosystem, ranging from R&D, design, fabrication, assembly, testing, packaging and module manufacturing and talent development. India hosts about 7% of the world’s GCCs of this domain and employs nearly 20% of the global semiconductor chip design workforce.
The Government recognises that R&D is critical for building a strong semiconductor ecosystem. As a foundational industry, advancements in semiconductor R&D drive innovation, cost efficiency and global competitiveness. It also ensures a high product performance and reliability in this rapidly evolving technology sector.
The Government launched the ‘Semicon India Programme’ for the development of semiconductor and display manufacturing ecosystem in the country. Following are salient achievements under this Programme:
– In a short span of three years, investment commitments of about Rs.1.6 lakh crore have been received
– 10 units have been approved, including 2 fabs and 8 ATMPs/OSATs, with construction progressing rapidly
– One unit has started commercial production and 3 units are doing pilot production
– Most approved projects incorporate pilot lines for product testing and qualification. Few proposals also include dedicated R&D activity
To complement manufacturing, the Design Linked Incentive (DLI) Scheme promotes design, development, and deployment of semiconductor products such as Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores.
It also provides infrastructure support for chip design to eligible applicants, including access to EDA tools, IP cores, and fabrication facilities.
24 projects have been approved for the design of semiconductor chips & SoCs, with a total project value of Rs. 900 crore.
These projects address critical sectors such as video surveillance, drone detection, energy metering, microprocessors, satellite communications, and broadband and IoT SoCs.
Out of 24 projects, 14 companies have raised venture capital funding to scale up and productize their solutions.
– Rs.650 crore raised in VC funding by Indian semiconductor startups
– 7 chips have been successfully fabricated out of 16 designs tapped out across multiple foundries, including advanced nodes such as 12 nm at TSMC
– 146 designs taped out by 49 institutions across India out of which SCL has successfully fabricated and packaged 94 student-designed chips
Building on the success of the Semicon India Programme, Union Budget 2026-27 announced India Semiconductor Mission 2.0 for equipment and materials, design full stack, Indian IP and fortify supply chains.
As per Industry estimates, India has emerged as a global hub for semiconductor design and R&D. India hosts about 7% of the world’s Global Capability Centres (GCCs) of Semiconductor domain and employs nearly 20% of the global semiconductor chip design workforce.
Indian engineers working in these GCCs contribute to the design, verification, and development of cutting-edge semiconductor technologies. Our engineers are now designing the advanced nodes including 2 nm chips and other globally competitive products.
Additionally, MeitY supports R&D projects across academic institutions, research organizations, and startups in areas of semiconductors such as nanotechnology, semiconductor materials, processes, chip design and IP cores.
