India is rapidly emerging as a global hub for semiconductor design and research and development. According to government information shared in Parliament in March 2026, India hosts around 7% of the world's semiconductor Global Capability Centres and employs nearly 20% of the global semiconductor chip design workforce. Under the Semicon India Programme, major investments of about ₹1.6 lakh crore have been committed, with multiple semiconductor fabrication and packaging units approved. The government is also promoting chip design, innovation, and research through schemes such as the Design Linked Incentive Scheme, ANRF, and the Research Development and Innovation Fund.
India is strengthening its position in the global semiconductor industry through major policy initiatives and investments. The information was presented in the Rajya Sabha on 13 March 2026 by the Ministry of Electronics and Information Technology.
India has become an important center for semiconductor design and research. The country hosts around 7% of the world's semiconductor Global Capability Centres. Indian engineers represent nearly 20% of the global chip design workforce.
To build a full semiconductor ecosystem, the government launched the Semicon India Programme. This programme focuses on developing the entire value chain including research, chip design, fabrication, assembly, testing, packaging, and manufacturing.
Major achievements of the programme include:
The Design Linked Incentive (DLI) Scheme promotes semiconductor chip design in India. It supports development of integrated circuits, chipsets, system-on-chips, and intellectual property cores.
The government is also supporting innovation through:
Research projects are also supported in institutions such as IIT Madras and IISc Bengaluru to develop advanced semiconductor technologies.
The Union Budget 2026–27 also announced India Semiconductor Mission 2.0 to strengthen supply chains and expand semiconductor manufacturing capacity.
Semiconductors and Chip Manufacturing
1.Which programme was launched to develop semiconductor manufacturing ecosystem in India?
A) Digital India Programme
B) Semicon India Programme
C) Make in India Electronics Mission
D) Startup India Scheme
Answer: B
2.Approximately what percentage of the global semiconductor chip design workforce is employed in India?
A) 5%
B) 10%
C) 20%
D) 35%
Answer: C
3.Which ministry is responsible for semiconductor development policies in India?
A) Ministry of Commerce
B) Ministry of Electronics and Information Technology
C) Ministry of Heavy Industries
D) Ministry of Finance
Answer: B
4.Which scheme promotes semiconductor chip design in India?
A) Production Linked Incentive Scheme
B) Design Linked Incentive Scheme
C) Digital India Scheme
D) Startup India Scheme
Answer: B
5.Which mission announced in Budget 2026–27 aims to strengthen semiconductor supply chains?
A) National Electronics Mission
B) India Semiconductor Mission 2.0
C) Digital Manufacturing Mission
D) Make in India Electronics Mission
Answer: B
Which material is most commonly used for manufacturing semiconductor chips?
Answer: Silicon
Students often confuse semiconductor manufacturing (fabs) with chip design companies.
Manufacturing produces chips, while design companies create chip architecture.
Examiners often ask about Semicon India Programme, semiconductor supply chain, chip fabrication, and India's role in global semiconductor industry.