India Targets 1 Lakh More Semiconductor Engineers Under Semicon 2.0

India is taking its semiconductor ambitions into a new phase, with the government setting a target to develop another 1 lakh semiconductor engineers under its newly launched Semicon 2.0 programme.

Electronics and IT Minister Ashwini Vaishnaw announced the target on August 31, 2026, as the government outlined the next stage of its semiconductor strategy. The move is designed to strengthen India’s talent pipeline alongside chip design, fabrication, advanced packaging, equipment, materials and semiconductor research.

From 85,000 engineers to another 1 lakh

India has already made significant progress in semiconductor skill development. According to the government, the country developed 85,000 semiconductor engineers in four years, achieving a target that had originally been planned over a 10-year period.

Semicon 2.0 now aims to add another 1 lakh engineers to this talent pool.

The push comes at a time when the global semiconductor industry is expected to face a substantial shortage of skilled workers. Vaishnaw said the global industry could face a shortage of around 1 million workers by 2032, making talent development an important part of India’s strategy.

Semiconductor education is moving beyond major cities

One of the notable aspects of the programme is the expansion of semiconductor design education beyond India’s traditional technology centres.

The government has expanded semiconductor design programmes to 355 universities, including institutions in Tier-II and Tier-III cities. Students have already designed more than 250 chips, according to the minister.

This could be important for India because semiconductor manufacturing and design require a much broader workforce than conventional software engineering.

The industry needs chip designers, verification engineers, process engineers, equipment specialists, packaging professionals, researchers and technicians. Semicon 2.0 is therefore attempting to build talent across the semiconductor value chain rather than focusing exclusively on chip fabrication.

Semicon 2.0 goes beyond semiconductor fabs

India’s first semiconductor push placed considerable attention on establishing manufacturing and packaging capacity. Semicon 2.0 is designed as a broader ecosystem programme.

The government has identified multiple areas spanning chip design, semiconductor manufacturing, equipment, materials, advanced packaging and research and development.

The programme also prioritises six chip categories:

Compute, memory, radio frequency, power, networking and sensors.

Around 100 chips have been identified for development across these areas.

That focus is significant because these technologies are fundamental to everything from smartphones and automobiles to data centres, industrial equipment, telecommunications and artificial intelligence systems.

Why semiconductor engineers matter

A semiconductor ecosystem cannot be built simply by constructing fabrication plants.

A modern chip passes through numerous stages before reaching an end product. Engineers are needed to design the architecture, create circuit layouts, verify designs, manufacture wafers, package chips and test their performance.

Equipment also needs to be installed, calibrated and maintained. Manufacturing processes require specialised knowledge of materials, chemistry, physics, electronics and precision engineering.

India’s larger objective is therefore to develop an ecosystem in which domestic talent can contribute to multiple stages of semiconductor production.

This is also why the government’s talent strategy is closely connected with its manufacturing ambitions.

A growing domestic chip ecosystem

India’s semiconductor programme has already resulted in several major projects.

The government has approved 12 semiconductor manufacturing projects across six states, while multiple ATMP and OSAT projects are also being developed. Some facilities have already entered commercial production, with additional projects expected to begin production during 2026.

Semicon 2.0 now attempts to build on that foundation.

The government has notified the programme with an outlay of approximately ₹1.27 lakh crore, while targeting a much deeper presence for India across the global semiconductor value chain.

The opportunity for Indian universities and startups

The semiconductor talent push could create opportunities well beyond large chip manufacturers.

Engineering colleges can become important centres for semiconductor education and research. Startups can develop chip-design IP, specialised components, semiconductor equipment and supporting technologies.

Students from smaller cities could also gain access to sophisticated electronic design automation tools and semiconductor programmes without having to move immediately to India’s traditional technology hubs.

Government data released earlier this year highlighted the scale of this educational push, including advanced EDA tools being provided to hundreds of academic institutions and thousands of engineering students participating in chip-design training.

From consuming chips to designing them

For decades, India’s technology strength has been strongly associated with software and IT services.

The semiconductor strategy represents an attempt to extend that capability into the physical foundations of modern technology.

The objective is not simply to assemble electronics in India. It is to develop expertise in designing chips, building manufacturing capabilities, developing semiconductor equipment and materials, and creating intellectual property that can compete internationally.

That transition will take years and will require sustained investment, specialised infrastructure and close cooperation between government, universities, research institutions and industry.

The bigger semiconductor race

The global semiconductor industry is increasingly viewed as a strategic sector because chips are essential to artificial intelligence, telecommunications, defence, automobiles, consumer electronics and industrial systems.

Countries are therefore competing not only for manufacturing capacity but also for semiconductor talent and intellectual property.

India’s decision to train another 1 lakh engineers under Semicon 2.0 reflects that larger competition.

The government has already demonstrated that its earlier talent target could be achieved faster than initially expected. The next challenge will be turning those numbers into engineers with deep, industry-ready expertise capable of contributing to actual chip products, manufacturing processes and semiconductor technologies.

If India can connect its growing talent base with its expanding manufacturing infrastructure, the semiconductor opportunity could extend far beyond factories.

It could help create a new generation of Indian chip designers, researchers, equipment manufacturers and technology companies — giving the country a much larger role in the global semiconductor supply chain.