Semicon India 2026 Sees ₹1 Lakh Crore Investment Commitments as Odisha Announces Silicon Valley Near Cuttack
India’s semiconductor ambitions received a major boost during SEMICON India 2026, with the government announcing investment commitments of around ₹1 lakh crore, or approximately $11–12 billion, under the newly approved Semicon 2.0 programme.
The announcements came as India seeks to expand its semiconductor capabilities beyond chip fabrication into design, equipment, materials, advanced packaging, research and development, and talent development.
A major state-level development also emerged from Odisha, which announced plans to establish an “Odisha Silicon Valley” across 870 acres at Naraj near Cuttack. The proposed technology hub is expected to bring semiconductor, electronics and IT projects together in an integrated ecosystem.
₹1 Lakh Crore Investment Commitments Under Semicon 2.0
Union Electronics and IT Minister Ashwini Vaishnaw said during SEMICON India 2026 that around ₹1 lakh crore in investment commitments had already been received under the Semicon 2.0 ecosystem.
According to the Ministry of Electronics and Information Technology, these investments are expected to materialise over the next two to three years, subject to the necessary board and shareholder approvals.
The government estimates that the investments could contribute to close to 1 lakh new employment opportunities across the semiconductor ecosystem.
The commitments add to the government’s broader semiconductor investment strategy, which is designed to create capabilities across the complete chip value chain rather than concentrating only on manufacturing.
What Is Semicon 2.0?
The Union Cabinet approved Semicon 2.0 in July 2026 with a total outlay of ₹1,27,500 crore.
The programme builds on the first phase of India’s semiconductor initiative and expands its scope to areas including chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging, research and development, and workforce development.
The government has described Semicon 2.0 as the next stage of India’s effort to develop a complete semiconductor ecosystem.
While Semicon 1.0 concentrated heavily on establishing manufacturing and packaging capabilities, the second phase is intended to strengthen supporting industries and technological capabilities around those facilities.
Six Pillars Drive India’s Semiconductor Expansion
Semicon 2.0 is structured around six broad areas.
The first is chip design, with the government seeking to support startups, fabless companies, intellectual property development and commercial chip and system designs.
The second focuses on machines and materials, including equipment, chemicals and gases required for semiconductor manufacturing.
The third pillar aims to encourage the establishment of additional semiconductor fabrication facilities, while the fourth focuses on expanding India’s ATMP and OSAT advanced packaging capabilities.
The remaining pillars cover research and development and talent development, including training and industry-oriented skills.
Odisha Silicon Valley Planned Across 870 Acres
One of the significant announcements linked to SEMICON India 2026 came from Odisha.
The state government announced that Odisha Silicon Valley will be developed across approximately 870 acres at Naraj near Cuttack.
The proposed hub is intended to bring together semiconductor, electronics and IT projects, creating an integrated technology and manufacturing ecosystem in the region.
The location near Cuttack and Bhubaneswar is expected to provide an industrial base for companies operating across different parts of the semiconductor and electronics value chain.
Odisha Receives ₹23,600 Crore Investment Proposals
Odisha also reported approximately ₹23,600 crore worth of investment proposals during its participation at SEMICON India 2026.
According to the state and central government announcements, these proposals could generate around 6,100 employment opportunities.
The state held discussions with semiconductor and technology companies including Lam Research, Applied Materials, SiCSem, 3D Glass Solutions, Cyient, Linde and HORIBA India. It also engaged with delegations from countries including Japan, Sweden and Taiwan.
The state also signed a Letter of Intent with QuadQuantum for a facility focused on manufacturing silicon carbide substrate wafers.
Cuttack Hub Could Expand India’s Semiconductor Footprint
The proposed Odisha Silicon Valley represents an effort to develop semiconductor-related activity beyond India’s existing industrial centres.
By bringing semiconductor manufacturing, electronics, information technology and related services into a common development zone, the project could provide infrastructure for companies operating at different stages of the technology supply chain.
The Odisha government has also discussed additional fiscal support for semiconductor and supply-chain projects as part of its effort to attract investment into the state.
India Expands Focus From Chips to the Full Ecosystem
India’s semiconductor strategy is increasingly moving beyond the objective of simply manufacturing chips domestically.
The government is seeking to establish capabilities covering design, fabrication, packaging, testing, equipment, materials, research and skilled talent.
This broader approach is important because semiconductor manufacturing depends on a complex network of specialised suppliers, advanced equipment manufacturers, engineering talent and research institutions.
Semicon 2.0’s six-pillar structure reflects this wider objective.
Global Companies Increase Semiconductor Interest in India
SEMICON India 2026 also highlighted growing participation from international semiconductor companies.
U.S.-based semiconductor equipment manufacturer Applied Materials announced plans to invest $5 billion in India over the next decade, with the investment expected to support research, supply-chain development and workforce expansion.
The event brought together more than 600 companies from 52 countries, according to Reuters, underscoring the international interest surrounding India’s semiconductor strategy.
India is attempting to use this international interest to build domestic capabilities while integrating the country more deeply into global semiconductor supply chains.
Semiconductor Manufacturing Becomes a Strategic Priority
Semiconductors are increasingly important for industries ranging from smartphones and automobiles to artificial intelligence, telecommunications, defence and data centres.
The government has therefore positioned semiconductor development as an important part of India’s technology and manufacturing strategy.
Under Semicon 2.0, the focus extends to advanced research, chip design and precision manufacturing, alongside efforts to establish additional fabs and strengthen packaging capabilities.
The programme also seeks to expand India’s pool of semiconductor professionals. The government has set a target of training 1 lakh technicians and industry-ready professionals as part of the broader ecosystem development effort.
India’s Semiconductor Push Enters a New Phase
The developments at SEMICON India 2026 indicate that India’s semiconductor strategy is entering a broader ecosystem-building phase.
The approximately ₹1 lakh crore in investment commitments under Semicon 2.0, combined with state-level initiatives such as Odisha Silicon Valley, reflects an effort to create manufacturing capacity while also developing the supporting infrastructure needed by the industry.
For Odisha, the planned 870-acre hub near Cuttack provides a specific regional focus for semiconductor and electronics development. At the national level, Semicon 2.0 provides the policy and financial framework for expanding India’s capabilities across the semiconductor value chain.
Frequently Asked Questions
1. What was announced at SEMICON India 2026?
The government announced around ₹1 lakh crore in investment commitments under the Semicon 2.0 ecosystem during SEMICON India 2026.
2. What is Semicon 2.0?
Semicon 2.0 is India’s second major semiconductor programme, approved with a total budget outlay of ₹1,27,500 crore to strengthen the country’s semiconductor design and manufacturing ecosystem.
3. What is Odisha Silicon Valley?
Odisha Silicon Valley is a proposed semiconductor, electronics and IT hub planned across 870 acres at Naraj near Cuttack.
4. How much investment has Odisha attracted at SEMICON India 2026?
Odisha reported approximately ₹23,600 crore in investment proposals, with the potential to create around 6,100 employment opportunities.
5. Where will Odisha Silicon Valley be located?
The proposed Odisha Silicon Valley will be developed at Naraj near Cuttack, in the Cuttack-Bhubaneswar region.
6. What are the six pillars of Semicon 2.0?
The six broad pillars are chip design, machines and materials, additional fabs, ATMP/OSAT packaging, research and development, and talent development.
7. How much is Semicon 2.0 worth?
The Union Cabinet approved Semicon 2.0 with a total outlay of ₹1,27,500 crore in July 2026.
8. How many jobs could the new semiconductor investments create?
The central government expects the approximately ₹1 lakh crore in Semicon 2.0 investment commitments to contribute to close to 1 lakh new employment opportunities across the semiconductor ecosystem.
9. Which companies engaged with Odisha at SEMICON India 2026?
Odisha held industry engagements involving companies including Lam Research, Applied Materials, SiCSem, 3D Glass Solutions, Cyient, Linde and HORIBA India.
10. Why is semiconductor manufacturing important for India?
Semiconductors are essential to technologies including artificial intelligence, telecommunications, electric mobility, automobiles, defence systems and data centres. Building domestic capabilities can help India expand its manufacturing ecosystem and strengthen supply-chain resilience.
