India has drawn up to $12 billion in investment commitments from global and domestic firms within months of its latest semiconductor policy, signaling strong momentum to build a large domestic chip manufacturing ecosystem.

SEMICON India 2026 Day 2 showcased 25 announcements and collaborations across the semiconductor value chain, spanning manufacturing, materials, logistics, design, packaging, power electronics, and workforce development.

India aims to extend its semiconductor capabilities beyond assembly to design, fabrication, equipment, and materials, targeting everyday products and critical infrastructure within five years.

Analysts see Tokyo Electron maintaining a strong position in etch and deposition tools with exposure to leading-edge logic and foundry cycles, while cautioning about memory cyclicality and potential timing risks for new fabs.

Sustainability and resource efficiency were emphasized, including water recycling in fabs and closed-loop cooling in data centers as the sector grows.

Future milestones should be measured by signed commercial contracts, installed equipment, qualified processes, and customer shipments rather than MoU counts, signaling progress toward a functional local ecosystem.

The new phase envisions an interconnected ecosystem involving designers, fabricators, suppliers, packaging and testing, research institutions, universities, startups, and industry partners to grow across the value chain.

Energy infrastructure was identified as foundational, with expansion of renewable and nuclear energy, including small modular reactors, to ensure reliable power for advanced manufacturing and data-centric technologies.

A networked approach to chip manufacturing was highlighted, stressing collaboration among equipment vendors, design houses, chemical suppliers, and packaging firms to address production challenges beyond wafer capacity.

Industry leaders urged readiness for cyber threats and disruptions, with risk discussions driving greater awareness and proactive cybersecurity measures.

R&D remains central to progress, promoting stronger industry-led research and collaboration among universities, startups, and industry to translate academic work into commercial technologies, including silicon photonics and AI-focused computing.

Developing a semiconductor ecosystem is a gradual, staged process, with steady progress amid critiques of pace, balancing ambition with practical constraints.