India is building an integrated semiconductor and artificial intelligence ecosystem, with investments in chip manufacturing, indigenous design, advanced computing, AI models and research aimed at strengthening technological self-reliance and positioning the country as a global technology hub.
The country’s semiconductor programme has moved from policy and ecosystem creation towards manufacturing, with 12 semiconductor projects approved across six states involving investment commitments of more than Rs 1.64 lakh crore. Three of these facilities have already commenced commercial production.
The government had allocated Rs 76,000 crore under Semicon 1.0 to establish the semiconductor ecosystem. In July 2026, Semicon 2.0 was approved with an outlay of Rs 1,27,500 crore, expanding the focus to chip design, semiconductor equipment and materials, fabrication, advanced packaging, research and development, and talent development.
The semiconductor facilities are expected to support sectors including automobiles, telecommunications, aerospace, power electronics and consumer electronics. The programme covers silicon and compound semiconductor fabrication, display fabrication and advanced packaging.
Focus on indigenous chip design
India is also expanding domestic chip-design capabilities through initiatives such as the Chips to Startup programme.
Electronic Design Automation tools have been deployed across 320 academic institutions, with more than 68,000 students trained. Twenty-four semiconductor design projects have received financial support, while 105 startups and MSMEs have received support for EDA tools under the Design Linked Incentive Scheme.
By April 2026, 211 chips had been taped out by 75 institutions, while seven chips had been successfully fabricated at various technology nodes, including 12 nanometres.
The next phase of Semicon 2.0 is also expected to support semiconductor intellectual property, chip and system designs, strengthening India’s domestic design ecosystem.
India’s semiconductor ambitions are being supported by international partnerships with countries and regions including the United States, Japan, Singapore, the Netherlands, Germany and the European Union.
Semicon India 2025 brought together more than 350 exhibitors and participants from 48 countries and regions, with 35,000 registrations and 30,000 physical attendees. Twelve Memorandums of Understanding were also announced during the event.
IndiaAI Mission expands computing capacity
Alongside semiconductor development, the IndiaAI Mission, approved with an outlay of about Rs 10,372 crore, is building capabilities for AI development, research and public service applications.
Shared AI computing capacity under the mission had expanded to more than 45,000 GPUs by June 2026. By August, 237 projects had accessed subsidised computing resources, covering 93.18 lakh GPU hours.
The government has also selected 20 indigenous foundation model proposals from 506 applications. These include 12 Large Multimodal Models and eight Small Language Models aimed at developing AI capabilities suited to Indian languages, requirements and contexts.
The AI Kosh platform hosts more than 14,000 datasets and 331 AI models, providing resources for researchers, developers and innovators.
IndiaAI initiatives have also developed 62 AI prototypes and deployed 20 AI solutions across public-sector institutions, while 11 national-level hackathons and innovation challenges are supporting the development of new applications.
AI research, responsible technology and infrastructure
The government has approved 58 Artificial Intelligence Centres of Excellence across States and Union Territories, with 22 already initiated across 13 States and UTs.
The National Mission on Interdisciplinary Cyber-Physical Systems has established 25 Technology Innovation Hubs supporting research, skills, startups and technology transfer in areas including AI, robotics, cybersecurity and quantum technologies.
The IndiaAI Mission is also focusing on responsible and trusted AI. As of July 2026, 13 projects had been approved under its Safe & Trusted AI pillar, addressing areas including deepfake detection, bias mitigation, privacy protection, explainability and AI risk assessment.
The expansion of AI is being accompanied by growth in data-centre capacity. Installed data-centre capacity increased from 375 MW in 2020 to around 1,575 MW, with new investment destinations emerging in states including Andhra Pradesh, Madhya Pradesh, Chhattisgarh and West Bengal.
India’s growing AI ecosystem has also received international recognition. The Stanford Global AI Vibrancy Report 2025 ranked India third globally in AI competitiveness and ecosystem vibrancy, while India was the second-largest contributor to GitHub AI projects in 2025.
At the India AI Impact Summit 2026, delegations from more than 100 countries and 20 international organisations participated, while the summit declaration was adopted by 92 countries and organisations. India also joined the Pax Silica coalition to work with the United States and other partners on resilient global silicon supply chains.
