Prime Minister Narendra Modi announced India's progress in semiconductor manufacturing during the inauguration of Semicon India 2026, emphasizing the country's role in building a reliable chipmaking ecosystem. Modi stated that India had moved from policy discussions to commercial production, with Indian plants supplying customers both domestically and internationally. Two additional plants in Mohali and Surat were set to begin production. The government has allocated $13.5 billion for the second phase of its Semiconductor Mission, following an initial $8 billion phase, according to the Times of India.

Modi argued that India's success in the semiconductor industry would strengthen global supply chains, especially amid the 'weaponisation' of supply chains. He highlighted the importance of compound semiconductors and silicon photonics for AI infrastructure. The government has introduced reforms allowing international companies to collaborate with Indian startups and design firms, as reported by The Hindu National. The second phase of the mission, with an outlay of ₹1.27 lakh crore, was recently notified.

Industry leaders at the event expressed optimism about India's trajectory. Applied Materials committed to investing $5 billion over five years to expand its R&D and supply chain in the country. Micron CEO Sanjay Mehrotra noted that commercial production at Sanand had already exceeded India's laptop memory demand. Infineon CEO Jochen Hanebeck praised India's 'pace of progress' and mentioned a 28% increase in hiring in the country. Merck’s electronics CEO Benjamin Hein described India as evolving into a 'full-stack global semiconductor powerhouse.' Lam Research COO Sesha Varadarajan announced a ₹10,000 crore investment to establish its first silicon component manufacturing facility in India. Wayne Allan of ASML highlighted India's growing importance in the global chip ecosystem.

The government aims to train one lakh people to form a 'global pool of talent' for the semiconductor industry, according to IT Minister Ashwini Vaishnaw. The next phase of the mission, Semicon 2.0, targets at least 200 startups and companies designing chips in India. Global industry body SEMI’s CEO Ajit Manocha estimated the semiconductor industry would cross $1.3 trillion this year and reach $2 trillion by 2030.

The long-term success of India's semiconductor mission remains uncertain, with challenges including technological gaps, infrastructure needs, and competition from established semiconductor hubs like the United States and South Korea. The government's ability to sustain momentum and attract sustained foreign investment will be critical to realizing its vision of a trusted chipmaking hub.