Under the India Semiconductor Mission (ISM), 12 semiconductor manufacturing projects worth around Rs 1.64 lakh crore have been greenlit, including a semiconductor fabrication unit, two compound semiconductor fabrication units, and nine packaging units. The India Semiconductor Mission 2.0, part of the Union Budget 2026-27, underscores a stronger national push for chip manufacturing, emphasizing semiconductor equipment, materials, indigenous intellectual property, and robust supply chains.
On the design front, 24 projects are receiving support through the Design Linked Incentive Scheme, with 105 companies benefiting from advanced chip design tools. Additionally, 23 design tapeouts have been accomplished at various foundries, showcasing India’s expanding expertise in semiconductor design.
The IndiaAI Mission, with a budget exceeding Rs 10,372 crore, has achieved significant progress. A key component is the establishment of a shared compute facility boasting over 45,000 GPUs, forming the computational backbone for AI research and deployment nationwide. Furthermore, the AI Foundation Model initiative is backing 15 Large Language Models and Small Language Models spanning speech, text, and vision applications.
The AI Kosh platform currently hosts more than 12,519 datasets, 307 AI models, and 20 toolkits, offering open access to AI development resources for researchers, startups, and institutions nationwide. Notably, 20 AI solutions have been implemented across 12 sectors through challenges, hackathons, and in-house development efforts.
To ensure widespread AI proficiency, 27 Data and AI Labs have been established in tier 2 and 3 cities, with 684 Fellowships granted to students and support provided to 8.4 million learners through the YUVA AI course. Moreover, 18 Centers of Excellence have been inaugurated nationwide, and 20 Indian AI startups have received support for capacity enhancement. The AI Governance Guidelines, released in November 2025, underscore India’s dedication to developing safe, inclusive, and trustworthy AI technologies.
The synergy between AI and semiconductor investments is reshaping India’s electronics manufacturing sector, which now stands at a value of Rs 13 lakh crore. Electronics has emerged as India’s third-largest export category, a remarkable feat from a decade ago. India currently ranks as the world’s second-largest mobile phone manufacturer, with an evolving advanced manufacturing ecosystem encompassing AI-enabled data center components, 5G equipment, and high-end networking gear. This integration into global technology supply chains is fostering substantial domestic employment opportunities.
