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India Pours Lakhs of Crores Into Semiconductor Push After Missing Earlier Chip Opportunities India is making its most aggressive push yet to enter the global semiconductor industry, with the government committing massive financial support to chip fabrication, packaging, design and supply chains. The latest step came in July 2026, when the Union Cabinet approved Semicon 2.0 with an outlay of ₹1.27 lakh crore, building on the ₹76,000-crore semiconductor programme launched in 2021. The scale of investment is already significant. By December 2025, 10 semiconductor projects involving around ₹1.60 lakh crore had been approved across six states. The number has since risen to 12 fabrication and packaging projects, alongside 24 semiconductor-design projects. In May alone, two additional manufacturing facilities worth more than ₹3,900 crore were approved in Gujarat. The strategy marks a major change from India's earlier semiconductor experience. India already had world-class chip-design talent in the 2000s, but struggled to convert that advantage into large-scale manufacturing. Around 2005-06, Andhra Pradesh promoted the ambitious Fab City project near Hyderabad, while SemIndia proposed a multibillion-dollar fabrication facility with technology support associated with AMD. The project ultimately failed to materialise as originally envisioned. Another frequently cited missed opportunity involved Intel. Analyses of India's semiconductor history say Intel considered establishing manufacturing in India during that era, but India's semiconductor incentive policy was not introduced quickly enough and the proposed investment did not proceed. However, it would be inaccurate to say the government in 2005 gave "no focus" whatsoever to semiconductors. India had research and design capabilities and subsequently developed semiconductor policies, but lacked today's scale of fiscal incentives, coordinated manufacturing strategy and investor support. With chips now critical to smartphones, cars, defence, AI and telecom networks, New Delhi increasingly views semiconductor manufacturing as both an economic opportunity and a strategic-security requirement. Subscribe to FactTechz In this video, the finger watch behind me is Shocknshop Finger Watch Punk Skull Flip-open Cover Quartz Analog Adju... If you want to check it out, you can click on the Flipkart product tag affiliate sticker on this video.

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