India's Semiconductor Push: ISM, C2S and What It Means for Students
India has long been a major center for chip design, and chip manufacturing is only now starting. Here is what the government programs are, which factories are coming up, and what that means for a student's job options.
Why India, why now
Global companies run large chip-design centers (GCCs) in Bengaluru, Hyderabad, Noida and Pune. A Q1 2026 report on the top 50 semiconductor design GCCs found hiring "rebounded strongly". Core VLSI was the largest hiring segment (CareerNet).
What is new is manufacturing. Since 2021 the government has approved support for wafer fabs, assembly and test units, and talent programs. That adds a second pool of jobs next to design.
India Semiconductor Mission: ISM 1.0 and ISM 2.0
- Dec 2021India Semiconductor Mission launched (₹76,000 crore)
- 2022Chips to Startup (C2S) program starts
- Feb 2023AICTE B.Tech VLSI and IC-manufacturing diploma curricula
- Jun 2023Micron ATMP at Sanand approved
- Aug 2025CG Power–Renesas OSAT pilot line opens
- Early 2026Micron and Kaynes reach production in Gujarat
- Jul 2026ISM 2.0 cleared (₹1.27 trillion)
- Late 2026Target: first silicon at the Dholera fab
| Program | What it is | Status (2026) |
|---|---|---|
| ISM 1.0 | Launched December 2021 with a ₹76,000 crore outlay | About a dozen projects approved by July 2026, with cumulative investment above ₹1.6 trillion |
| ISM 2.0 | Second phase, cleared by the Union Cabinet on 15 July 2026 | ₹1.27 trillion outlay. Covers fabs, packaging, supply chain, design-linked incentives for startups, and up to 75% support for R&D and talent programs |
| Chips to Startup (C2S) | MeitY program launched in 2022, ₹250 crore over 5 years | Target of 85,000 industry-ready engineers and 1 lakh students trained |
| AICTE model curricula | B.Tech Electronics (VLSI Design and Technology) and Diploma in IC Manufacturing, February 2023 | Any AICTE college may adopt them; several private colleges now offer the B.Tech |
Sources: ISM 2.0 approval from Business Standard, 15 July 2026 and IBEF.
Chips to Startup (C2S) program
- Run by MeitY since 2022, with ₹250 crore over 5 years.
- Target: 85,000 industry-ready engineers at undergraduate, postgraduate and PhD level, and 1 lakh students trained.
- Student chips are fabricated on a 180 nm process at SCL Mohali through the ChipIN Centre at C-DAC Bengaluru.
- Access is through partner institutions. Ask your department whether it is a C2S partner.
In February 2026 an open-source SCL 180 nm design flow was shown for tier II-IV colleges. Students without licensed tools can now still reach silicon (Electronics For You).
Sources: PIB document, January 2026; Digital India press release; Drishti IAS.
AICTE VLSI curricula
In February 2023 AICTE launched two model curricula: a B.Tech in Electronics (VLSI Design and Technology) and a Diploma in IC Manufacturing (Careers360). Any AICTE college may adopt them, and several private colleges now offer the B.Tech.
Fabs and OSATs coming up
These are a selection of approved manufacturing projects. OSAT means outsourced assembly and test; ATMP means assembly, test, marking and packaging.
| Project | Type | Location | Status as reported |
|---|---|---|---|
| Tata Electronics with PSMC | Wafer fab, about US$11B | Dholera, Gujarat | First silicon targeted for late 2026 |
| Micron | Memory ATMP | Sanand, Gujarat | Operational |
| Kaynes Semicon | OSAT | Sanand, Gujarat | In production |
| CG Power with Renesas | OSAT | Sanand, Gujarat | In production |
| Tata OSAT | OSAT | Morigaon, Assam | Approved |
| HCL-Foxconn | Display-driver unit | Jewar, Uttar Pradesh | Approved |
| SiCSem | Silicon carbide (SiC) fab | Bhubaneswar, Odisha | Approved |
What it means for students
| Design jobs | Manufacturing jobs (fab and OSAT) | |
|---|---|---|
| Roles | RTL, verification, physical design, STA, DFT, analog | Fab process, equipment, yield, packaging, test |
| Size today | Largest and best-paid pool | New and growing |
| Where | Bengaluru, Hyderabad, Noida, Pune | Sanand and Dholera (Gujarat), Assam and other sites |
| Typical entry | B.Tech ECE/EEE with projects, or M.Tech VLSI | Diploma, or B.Tech in Electrical, Chemical, Mechanical or Materials |
| Core skills | Digital logic, CMOS, Verilog, STA, Tcl/Python | Process, materials, statistics |
- If you are in ECE or EEE, design is still the larger opportunity. Start with the after-B.Tech guide and the project library.
- If you are in Chemical, Mechanical, Materials or Electrical, manufacturing roles are a real new option near the new plants.
- If you are choosing a diploma, the Diploma in IC Manufacturing targets technician roles in these units.
- Do not choose a college or course only because it mentions "semiconductor". Check labs and placements.
Questions people ask
What is ISM 2.0?
ISM 2.0 is the second phase of the India Semiconductor Mission. The Union Cabinet cleared it on 15 July 2026 with a ₹1.27 trillion outlay. It covers fabs, packaging, supply chain, design-linked incentives for startups, and up to 75% support for R&D and talent programs.
How can a student benefit from the C2S program?
C2S works through partner institutions, which get training support and chip fabrication on SCL Mohali's 180 nm process via the ChipIN Centre. Ask your department whether it is a partner. If not, Tiny Tapeout is an open alternative.
Will the new fabs create jobs for ECE graduates?
Some, mainly in process, equipment, test and packaging. Design jobs in RTL, verification, PD, STA, DFT and analog remain the larger and better-paid pool for ECE graduates.
Can diploma holders get semiconductor jobs in India?
Yes. Fab and OSAT units hire diploma technicians, and AICTE launched a Diploma in IC Manufacturing in 2023 for these roles.
Is India's chip manufacturing already running?
Partly. Micron's ATMP unit and the Kaynes and CG Power-Renesas OSATs in Sanand are reported operational. The Tata-PSMC fab at Dholera targets first silicon in late 2026. Check PIB for current status.