India has received fresh semiconductor investment proposals worth about $11–12 billion under Semicon 2.0, giving the government a new pipeline of projects aimed at building the supply chain around chip manufacturing rather than focusing only on fabrication plants.
IT and Electronics Minister Ashwini Vaishnaw said the proposals are worth roughly ₹1 lakh crore and span semiconductor equipment, materials, gases, chemicals and substrates. The projects are expected to take shape over the next two to three years.
The new proposals represent the next stage of India’s semiconductor strategy: building the companies and suppliers that fabs need in order to operate at scale.
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Fresh proposals move beyond chip factories
The first phase of India’s semiconductor programme focused heavily on fabs and packaging plants.
Semicon 2.0 is designed to widen that approach.
Vaishnaw said the new investment interest includes machinery and materials used throughout the semiconductor manufacturing process, from specialised equipment to gases and chemicals required inside fabrication facilities.
That matters because a semiconductor fab does not operate in isolation.
It relies on a large ecosystem of equipment makers, material suppliers, precision components, clean-room inputs and specialised chemical providers.
If those inputs need to be imported entirely from overseas, the country may still remain vulnerable to global supply disruptions even after building local fabrication capacity.
The government’s current objective is therefore to bring more of that supporting ecosystem into India.
Applied Materials commits $5 billion India push
The Semicon India 2026 conference also brought major announcements from global semiconductor-equipment companies.
Applied Materials announced its India Vision 2035 plan, committing $5 billion over the next decade towards research, semiconductor supply-chain development and talent.
The company also plans a 140-acre advanced semiconductor research park and says it wants to expand its India-based supply-chain capacity tenfold by 2035.
Applied Materials is one of the world’s biggest suppliers of equipment used to manufacture chips.
Its decision to expand research and supplier activity in India is significant because semiconductor equipment is one of the most technically demanding parts of the industry.
A stronger equipment ecosystem can reduce the gap between having fabs in India and having the technical support, spares and engineering capability required to keep them operating efficiently.
Lam Research plans ₹10,000 crore silicon-component facility
Lam Research has separately announced plans to invest around ₹10,000 crore over the coming years.
The company intends to establish its first silicon-component manufacturing facility in India while expanding advanced research and development operations.
The proposed project will include silicon ingot production and processing for advanced semiconductor technologies.
This is another important shift.
India’s semiconductor ambition has often been discussed in terms of finished chips, but the supply chain begins much earlier.
Silicon components, wafers, process chemicals and fabrication equipment all sit upstream of the final chip.
Bringing those activities into the country can make the ecosystem more resilient and create higher-value manufacturing capability.
Tata Electronics starts building Dholera supplier network
The private-sector push is also visible around Tata Electronics’ semiconductor fabrication plant in Dholera, Gujarat.
Tata Electronics signed agreements with Singapore-based Ascendas First Space for a 363-acre vendor park around the fab.
It also partnered with Fujifilm to localise critical semiconductor materials and with JSR Corporation for photoresists and advanced chemicals.
These agreements illustrate the wider challenge India is trying to solve.
A fab may represent the centre of a semiconductor project, but the industrial ecosystem around it can be just as important.
Suppliers need to be close enough to deliver sensitive materials reliably and quickly, while companies need access to logistics, utilities, specialist engineers and clean manufacturing infrastructure.
The Dholera vendor park is therefore intended to build an industrial cluster rather than a single standalone factory.
Semicon 2.0 targets nearly one lakh jobs
The government expects the broader Semicon 2.0 ecosystem to support close to one lakh jobs.
The programme has a total outlay of ₹1,27,500 crore and is structured around six areas: chip design, machinery and materials, new fabrication facilities, advanced packaging, research and talent development.
Around 400 universities and institutions are already involved in chip-design training under the first phase.
The government now wants to use that base to develop more engineers, technicians and researchers needed by new factories and suppliers.
India’s challenge is not simply attracting capital.
Semiconductor plants require highly specialised workers, engineers familiar with complex manufacturing processes and suppliers capable of meeting extremely strict quality standards.
That means investment announcements will need to be matched by skills and execution.
$12 billion figure is still a proposal pipeline
The $11–12 billion number should also be read carefully.
These are investment proposals, not projects that have all received final approval or already begun construction.
Vaishnaw himself said several companies do not yet want their identities disclosed because internal approvals are pending.
Some projects could therefore change in size, timing or scope before they reach the implementation stage.
That makes the next two to three years critical.
The real measure of Semicon 2.0 will be how many proposals convert into factories, research centres, supplier operations and commercial production.
India already has 12 semiconductor projects approved under the first phase, and three have reached commercial production, according to government data.
The second phase is now attempting to fill the gaps around those projects.
What this means for you
India’s semiconductor push is moving beyond headline fab announcements into the less visible parts of the supply chain — equipment, gases, chemicals, substrates and silicon components. That is where long-term industrial capability will be built if the proposals actually convert into operating projects.
The420 Insight
The $12 billion proposal pipeline matters because a chip industry cannot be built around fabs alone. India’s real test now is whether it can create the supplier ecosystem around those fabs fast enough to reduce dependence on imported equipment and materials. If that happens, Semicon 2.0 could shift the country from assembling parts of the chip value chain to owning much more of it.
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