India is moving into the next phase of semiconductor manufacturing, with the country’s first fabrication plant being built at Dholera in Gujarat. The facility is expected to become operational in 2028, according to the report.
Semiconductor chips are essential for the functioning of most electronic products, including smartphones, computers, medical equipment, defence systems and data centres. They help store information and regulate electrical flow, making them a critical component of modern technology.
With semiconductors seen as a future-shaping technology alongside renewable energy, quantum technology and nuclear technology, the Union government has prioritised expanding domestic manufacturing capacity. In addition to the Dholera project, plans to set up 10 more semiconductor manufacturing plants across the country are currently at various stages.
Industry analysts cited in the report estimate that India’s semiconductor market value could rise to Rs 1.66 lakh crore by 2031. At the ‘Semicon India 2026’ conference in Delhi, Prime Minister Narendra Modi said funding for the ‘Semicon India 2.0’ programme has been increased from Rs 76,000 crore to Rs 1.27 lakh crore, adding that 12 chip manufacturing projects have already been approved and more are expected in the next phase.
The report also notes that energy security is a major challenge for the sector, especially as artificial intelligence drives higher power demand in data centres. Experts said sustained, coordinated efforts in skilled workforce development and research will be needed for India to emerge as a global manufacturing hub.
