Prime Minister Narendra Modi officially inaugurated the SEMICON India 2026 summit at Yashobhoomi in New Delhi, emphasizing the country's strategic acceleration toward establishing a full-stack global chip manufacturing hub. Addressing international technology executives, semiconductor fabricators, and policy leaders, the Prime Minister announced that the national India Semiconductor Mission 2.0 has expanded its fiscal incentive outlay to $13.5 billion, up from $8 billion in its inaugural phase. The enhanced policy framework seeks to transition India beyond semiconductor design and assembly into commercial wafer fabrication, advanced silicon packaging, raw material sourcing, and specialized research facilities. Highlighted during the conference, global semiconductor leader Applied Materials announced a major $5 billion investment under its Vision 2035 framework to directly integrate Indian manufacturing nodes into global supply chain networks. Industry analysts and corporate leaders noted that expanding fiscal subsidies and building dedicated industrial infrastructure positions India as a trusted alternative destination for global semiconductor diversification amid shifting international supply chain dynamics. Phase 2 Unveiled to Build Full-Stack Domestic Chip EcosystemInaugurating the fifth edition of SEMICON India 2026 at Yashobhoomi in Dwarka, New Delhi, Prime Minister Narendra Modi announced the launch of Phase 2 of the India Semiconductor Mission (ISM 2.0). Highlighting India's rapidly expanding industrial footprint, the Prime Minister revealed that the central government has expanded the mission's financial outlay to $13.5 billion, up from $8 billion allocated during the initial rollout in 2021. The strategy aims to transform India from a chip design specialist into a full-stack semiconductor ecosystem spanning silicon fabrication, advanced packaging, raw materials, manufacturing equipment, and specialized R&D. Policy Easing to Enable Foreign Collaboration and Design HousesA key pillar of the ISM 2.0 rollout is the easing of regulatory and equity frameworks to encourage international joint ventures. Prime Minister Modi emphasized that foreign technology corporations can now directly partner with Indian startups, indigenous chip design houses, and Overseas Citizen of India (OCI)-owned entities to access state capital subsidies and R&D grants. Highlighting that 12 commercial semiconductor projects have already received government sanction under the first phase, the Prime Minister assured global executives that New Delhi will provide flexible policy sandboxes and infrastructure support to de-risk long-term capital investments. Global Tech Giants Commit Investment Amid Supply Chain RealignmentThe inauguration comes at a pivotal moment as international technology conglomerates seek trusted alternative manufacturing bases to diversify global supply chains. Coinciding with the event, global semiconductor equipment leader Applied Materials announced a $5 billion strategic investment plan under its Vision 2035 framework to integrate domestic Indian suppliers directly into global equipment value chains. Pointing to recent Q1 GDP growth figures and international sovereign rating upgrades, Prime Minister Modi asserted that India’s vast engineering talent pool, expanding domestic electronics market, and strong IP protections make it the natural destination for next-generation semiconductor fabrication.