India’s next technology leap will depend on the precision engineering behind every advanced electronics facility.
India’s electronics sector is entering a decisive new phase. Semiconductors, nanotechnology, quantum technologies and photonics are becoming strategic national priorities supported by policy, funding, infrastructure planning and growing industrial demand. For Deerns, this creates an opportunity to support clients in translating technical ambition into safe, reliable and future-ready facilities.
The momentum is clear. India Semiconductor Mission (ISM) 2.0 marks a strategic shift towards strengthening India’s domestic semiconductor ecosystem and long-term capabilities by focusing on equipment, materials, indigenous IP development, and resilient supply chains. As of July 2026, the proposed ₹1.25 lakh crore (US$ 13.21 billion) budget for ISM 2.0 has received approval from the Finance Ministry’s Expenditure Finance Committee and is awaiting final approval from the Union Cabinet.
ISM 2.0 builds on the foundation established by ISM 1.0, which was launched with a budget of ₹76,000 crore (US$8.03 billion). Under ISM 1.0, the government provides fiscal support of up to 50% of eligible project costs to attract large investments in semiconductor manufacturing projects, display fabs, and Outsourced Semiconductor Assembly and Test (OSAT) and Assembly, Testing, Marking and Packaging (ATMP) facilities in India.
In parallel, India’s National Quantum Mission was approved with a total cost of ₹60 billion (approx. US$700 million) between 2023 and 2031, with the aim of strengthening research, industrial development and the wider quantum technology ecosystem.
From ambition to delivery
Advanced electronics facilities demand specialised environments and precise commissioning. In a fast-growing market, projects often move to execution before production requirements and front-end design are fully defined, increasing delivery risk.
The most successful projects begin with a clear understanding of 5 critical factors:
- Clearly defined production goals, capacity, and cost targets
- Site feasibility with reliable and cost-efficient utility availability
- Appropriate cleanroom classification and contamination control
- Well-integrated requirements for process gases, water, waste, and exhaust
- Robust commissioning, validation, and operational readiness
When these are addressed early, design becomes more robust, procurement becomes more accurate and construction becomes more predictable.
Why early involvement matters
For semiconductor, nanotechnology and quantum facilities, decisions made during the earliest project stages have a lasting impact on project performance and delivery. Factors such as site selection, utility strategy, equipment layouts, modularisation, cleanroom airflow, process zoning and environmental systems are most effective when considered from the outset as part of an integrated design approach.
Early specialist involvement enables project teams to evaluate options, validate assumptions, identify opportunities and constraints, and establish a clear and actionable pathway from concept through to operation. This supports informed decision-making, efficient project execution and a smoother transition into commissioning and operational readiness.
Deerns’ approach in India helps clients define the right technical path, from feasibility and concept design to engineering, quality control and commissioning, supported by global high-tech expertise.
Building India’s high-tech ecosystem
India’s next challenge is to build an ecosystem of trained operators, engineers, technicians, specialist vendors and contractors who understand the standards of high-tech production environments.
This creates opportunities beyond large manufacturing plants. Training centres, pilot lines, nanotechnology laboratories, quantum research and photonics facilities will all form part of the national capability base. These projects may initially be smaller than major fabs, but they are strategically important because they develop the skills, ecosystem and operating culture that larger facilities depend on.
5 key growth areas are:
- Nanoelectronics and advanced materials research
- Quantum technology laboratories
- Photonics and sensor development
- Semiconductor training and cleanroom education facilities
- OSAT, ATMP and future wafer fab infrastructure
India already has strong academic and research foundations in cities such as Bengaluru, Mumbai, Chennai and the Delhi-Gurugram region. The next step is to connect this knowledge base with deliverable, scalable and internationally competitive infrastructure.
Managing supply chain maturity
Supply chain development will be one of the defining issues for India’s electronics sector. India’s Semiconductor Mission (ISM) 1.0 and 2.0 demonstrate the country’s long-term ambition to become a globally competitive semiconductor manufacturing hub. ISM 1.0 focused on building fabrication, assembly and testing capacity through significant financial incentives.
" ISM 2.0 expands this vision by strengthening domestic supply chains, developing local equipment and materials capabilities and investing in research and skills development.
These ambitions place greater emphasis on the maturity of India’s electronics supply chain. As advanced semiconductor facilities depend on highly specialised systems and experienced suppliers, building local capability and technical expertise will be essential. This creates an important role for expert planning, specification and quality management to ensure projects are delivered efficiently, risks are reduced and investments achieve long-term operational value.
Deerns’ role in India’s Electronics future
Deerns is positioned to support this transition through a combination of local presence and global expertise. Local presence matters because Indian clients need partners who understand national procurement systems, local taxation, rupee-based contracting, statutory requirements and the practical realities of delivery in India.
" Global expertise matters because quantum, nanotech, photonics and semiconductor facilities require specialist knowledge that has been developed across international high-tech markets.
Deerns can connect this understanding and knowledge in a way that is practical, contextual and delivery focused.
This combination is particularly important as India moves from early OSAT and ATMP growth toward more complex wafer fab, research and advanced manufacturing environments. As projects become larger and more technically demanding, clients will need partners who can support decisions from the first feasibility conversation through to commissioning.
Engineering confidence into India’s high-tech future
India has the policy support, market ambition and technical talent to strengthen its position as a global leader in electronics, nanotechnology, quantum technologies and photonics. The next phase will be translating this momentum into high-performing, operational facilities.
Success in these sectors depends on designing facilities from the inside out, with process requirements, utilities, contamination control, sustainability, resilience and commissioning integrated as a single, coordinated system from the outset. By combining local project insight with international high-tech engineering expertise, Deerns helps clients turn strategic ambition into facilities that are future-ready, performance-driven and adaptable to evolving technologies and industry needs.
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