India needs whole-of-industry approach to build global semiconductor hub
Synopsis
Key Takeaways
India's electronics and semiconductor sector must shift to a coordinated whole-of-industry approach to convert growing investments and expanding capacities into a globally competitive ecosystem, industry experts said on Wednesday, 23 September 2026, according to an official fact sheet released during SEMICON India 2026 in New Delhi. The call marks a pivotal moment for a sector that experts say is now growing at an 'unprecedented pace.'
Key Developments at SEMICON India 2026
The flagship semiconductor event drew over 600 exhibitors, including nearly 300 international companies, underscoring deepening global interest in India's chip and electronics ecosystem. The event also witnessed 56 MoUs, strategic initiatives, and industry announcements spanning manufacturing, design, packaging, artificial intelligence, R&D, logistics, and skilling.
Industry leaders representing different segments of the ecosystem — semiconductors, electronics manufacturing, components, materials, design, packaging, and end-use applications — acknowledged that while their associations operate independently, they are converging on a single national objective: building a world-class electronics and semiconductor sector in India.
The 'Silicon to Systems' Vision
A central theme across discussions was the increasing technological interdependence across the value chain. According to experts cited in the official statement, 'Chips derive value not in isolation but through their integration into devices, products and systems. Advances in fabrication rely on supporting materials and equipment, while manufacturing depends on packaging, testing and broader electronics capabilities.'
This interconnected reality reinforced the broader 'Silicon to Systems' framework, where design, fabrication, packaging, electronics, and technology solutions must operate in tandem. Notably, industry leaders also explored the creation of a permanent community mechanism to facilitate continuous dialogue and drive collective action on matters of national importance — a step beyond existing association-level coordination.
Government Push and Operational Milestones
The government's Production-Linked Incentive (PLI) schemes and the India Semiconductor Mission have been credited with strengthening domestic capabilities. As of September 2026, the government has approved 12 semiconductor projects under the Semicon India programme, with five commercial semiconductor units already operational — a concrete sign that policy intent is beginning to translate into physical infrastructure.
What Industry Leaders Are Calling For
Experts stressed that the next stage of growth cannot be driven by any single segment alone. Existing associations, they said, must build on their individual strengths while creating a common platform for cross-sectoral collaboration — particularly on issues that cut across value chains. The call for structured inter-association coordination reflects a maturing industry that is moving beyond early-stage capacity building toward systemic competitiveness.
What Comes Next
With global companies increasing their India presence and investments accelerating, the pressure is now on industry bodies, policymakers, and ecosystem players to institutionalise collaboration rather than leave it to bilateral or event-driven engagement. How quickly India can operationalise the remaining approved semiconductor projects — and whether the proposed permanent community mechanism takes shape — will be the key indicators to watch in the months ahead.