India is expanding its capabilities across semiconductors, artificial intelligence, chip design and high-performance computing as the government seeks to build a technology ecosystem focused on domestic manufacturing, innovation and supply-chain resilience.

According to data released by the government on Thursday, the semiconductor and AI sectors are increasingly being developed as interconnected parts of India's technology strategy, covering chip design and fabrication, advanced packaging, computing infrastructure, indigenous AI models and deep-tech skills.

Semiconductor Mission Expands

The first phase of the semiconductor programme was launched with a budgetary outlay of ₹76,000 crore. The government said the programme supports the wider semiconductor value chain, including chip design, fabrication, packaging, testing, equipment, materials and talent development.

In July 2026, the government approved a ₹1.27 lakh crore budget for Semicon India 2.0. The next phase focuses on six strategic areas — chip design, equipment and materials, semiconductor fabs, ATMP/OSAT, research and development, and talent.

The government said 12 semiconductor projects have been approved across six states, involving investment of more than ₹1.64 lakh crore. These include silicon and compound semiconductor fabs, display fabrication and advanced packaging facilities.

Three facilities have already started commercial production, marking a shift from policy support and project approvals towards actual semiconductor manufacturing.

Building Domestic Chip Design

India is also strengthening its chip-design capabilities through initiatives such as the Chips to Startup programme.

Electronic Design Automation tools have been made available across 320 academic institutions, while more than 68,000 students have received training under the programme.

Under the Design Linked Incentive scheme, 24 semiconductor design projects have received financial support. Another 105 startups and MSMEs have received assistance for access to EDA tools.

The government said 75 institutions had completed tape-outs of 211 chip designs by April 2026. Seven chips have subsequently been manufactured across different technology nodes, including advanced nodes such as 12 nanometres.

Global Semiconductor Partnerships

India is also expanding international cooperation with countries and regions including the United States, Japan, Singapore, the Netherlands, Germany and the European Union.

The government said Semicon India 2025 attracted more than 350 exhibitors and participants from 48 countries and territories. The event recorded more than 35,000 registrations and 30,000 physical attendees, along with 25,000 online viewers.

Twelve memoranda of understanding were also announced to support product development, services and semiconductor skill development.

IndiaAI Builds Computing Capacity

Alongside semiconductors, the government is expanding the country's AI infrastructure through the IndiaAI Mission, approved with an outlay of around ₹10,372 crore.

The mission's shared computing capacity crossed 45,000 GPUs by June 2026. By August, 237 projects had accessed subsidised AI computing, accounting for 93.18 lakh GPU hours.

The infrastructure is intended to provide researchers, startups and innovators with affordable access to high-performance computing required for developing, training and testing AI models.

Indigenous AI Models

The government said 20 proposals for indigenous foundation AI models were selected from 506 applications. These include 12 large multimodal models and eight small language models.

The initiative is aimed at developing AI systems suited to Indian languages, requirements and local contexts.

The AIKosh platform had more than 14,000 datasets and 331 AI models as of July 2026, providing resources for researchers and developers.

IndiaAI initiatives had also produced 62 AI prototypes and deployed 20 AI solutions in public-sector institutions by August 2026. Eleven national-level hackathons and innovation challenges have been organised to encourage practical AI applications.

Focus on Responsible AI

The government said 58 Artificial Intelligence Centres of Excellence had been approved across states and Union Territories by August 2026, with 22 centres in 13 states and Union Territories already approved and operational work underway.

The IndiaAI Mission has also approved 13 projects under its Safe and Trusted AI pillar. These projects address areas including bias reduction, machine unlearning, deepfake detection, privacy-preserving AI, explainability and AI risk assessment.

The National Mission on Interdisciplinary Cyber-Physical Systems has established 25 technology innovation hubs supporting work in AI, robotics, cybersecurity, quantum technology and other emerging fields.

Data Centres and AI Infrastructure

India's data-centre capacity has expanded alongside the growth of AI and digital services.

Installed data-centre capacity has increased from around 375 MW in 2020 to approximately 1,575 MW currently. Major data-centre locations include Mumbai, Navi Mumbai, Chennai, Hyderabad, Bengaluru, Delhi-NCR and Gujarat.

The sector is also expanding into states such as Andhra Pradesh, Madhya Pradesh, Chhattisgarh and West Bengal, which are emerging as new destinations for data-centre investments.

India’s Global AI Position

The government cited the Stanford Global AI Vibrancy Report 2025, which ranked India third globally in AI competitiveness and ecosystem vibrancy.

India was also the second-largest contributor to AI projects on GitHub in 2025, according to the government.

The India AI Impact Summit held in February 2026 attracted delegations from more than 100 countries and 20 international organisations. Ninety-two countries and organisations adopted the summit declaration.

India also joined the Pax Silica coalition at the summit, aimed at strengthening global silicon supply-chain cooperation with the United States and other partner countries.

Chips and AI Drive Next Phase

The government's semiconductor and AI strategy is moving beyond project approvals towards manufacturing, commercial deployment and domestic intellectual property.

Semicon India 2.0 is expected to place greater emphasis on equipment, materials, advanced packaging, research, semiconductor IP and skilled manpower. At the same time, the IndiaAI Mission is building shared computing infrastructure and supporting AI applications across government, industry, academia and startups.

Together, the two sectors are emerging as key components of India's broader push for technology self-reliance, resilient supply chains and a globally competitive digital economy.