India steps up advanced packaging push
India is broadening its semiconductor ambitions beyond wafer fabrication, with advanced packaging, OSAT capacity, substrates and supporting supply chains emerging as key priorities.
India is entering a new phase of its semiconductor strategy, with advanced packaging expected to play an increasingly important role as the country moves from policy commitments towards commercial semiconductor manufacturing.
The shift will be a key focus at SEMICON India 2026, which takes place in New Delhi from 17–19 September under the theme “Silicon to Systems: Building the Ecosystem”.
India's semiconductor programme initially centred on establishing foundational manufacturing capabilities, but the country's latest policy phase is placing greater emphasis on the wider infrastructure needed to support a complete semiconductor supply chain.
In July, the Indian government approved Semicon 2.0 with an outlay of Rs 1.27 lakh crore. The programme expands the country's focus to areas including semiconductor equipment and materials, chip design, research and development, talent and manufacturing infrastructure.
Advanced packaging is among the capabilities India will need to develop as it builds links between semiconductor design, manufacturing, assembly and system integration.
The country is already developing outsourced semiconductor assembly and test (OSAT) capacity, while semiconductor companies are expanding their design and R&D activities in India.
The next challenge is to build the supporting ecosystem around these facilities, including packaging materials, substrates, equipment and other supply-chain capabilities.
Ashok Chandak, President of SEMI India and IESA, said the questions being asked by international semiconductor companies have shifted from whether India can become a semiconductor destination to where specific opportunities exist and how quickly projects can scale.
This reflects a broader change in India's semiconductor ambitions. Rather than focusing solely on establishing wafer fabs, the country is seeking to capture greater value across the semiconductor-to-electronics value chain, from design and manufacturing through packaging, testing and system integration.
For advanced packaging, this could create opportunities across a range of technologies and supporting infrastructure. Substrate manufacturing, packaging materials, inspection and metrology, assembly equipment and thermal-management capabilities will all become increasingly important as local packaging capacity expands.
India's growing electronics market also provides a potential demand base for domestically packaged semiconductor devices, while the country's established engineering and design workforce could provide additional support for more complex packaging and system-integration activities.
The international semiconductor industry is also taking a closer look at India's developing ecosystem. SEMICON India 2026 is expected to bring together more than 300 Indian companies and over 100 international companies, alongside country pavilions representing semiconductor ecosystems including Japan, Korea, the Netherlands, Singapore, Malaysia and Sweden.
The involvement of international suppliers could be particularly important as India develops capabilities in areas where domestic supply chains remain limited.
For advanced packaging, the development of a local ecosystem will ultimately depend on more than assembly capacity. Access to substrates, materials, equipment, process technology and engineering expertise will be critical if India is to progress towards increasingly sophisticated packaging technologies.
The country's semiconductor strategy therefore marks a potential transition from establishing individual manufacturing projects towards building an interconnected semiconductor ecosystem.
As new fabs and OSAT facilities progress towards production, advanced packaging could become an increasingly important part of India's effort to establish itself as a global semiconductor manufacturing and supply-chain hub.
