The Union Cabinet has approved the ambitious Semicon 2.0 programme with a total outlay of ₹1,27,500 crore, marking the next phase of India’s strategy to become a global semiconductor powerhouse. Building on the momentum of the first semiconductor mission, the new initiative aims to strengthen every stage of the chip value chain—from design and manufacturing to research, materials, packaging and talent development.
The programme is expected to accelerate investments, boost domestic manufacturing and reduce India’s dependence on imported semiconductors.
Six Pillars To Build A Complete Ecosystem
Semicon 2.0 is designed around six key pillars that collectively cover the semiconductor value chain. These include promoting chip design, encouraging the production of semiconductor equipment and materials, establishing more fabrication plants (fabs), strengthening outsourced semiconductor assembly and testing (OSAT) capabilities, supporting advanced research and developing a skilled workforce.
The holistic approach aims to create a self-sustaining semiconductor ecosystem rather than focusing only on chip manufacturing.
Greater Focus On Chip Design
The government plans to expand India’s growing chip design ecosystem. More support will be provided to startups and MSMEs developing semiconductor intellectual property (IP), system-on-chip (SoC) solutions and advanced electronic products.
India has already witnessed strong participation from technology startups, and the new programme seeks to transform the country into a global hub for semiconductor design.
Boost For Manufacturing And Supply Chains
The scheme will provide incentives for companies manufacturing semiconductor materials, chemicals, gases and precision equipment that are essential for chip fabrication. At the same time, India will continue attracting global manufacturers to establish additional semiconductor fabrication units, display fabs and compound semiconductor facilities.
This is expected to strengthen domestic supply chains while increasing local value addition.
Supporting Innovation And Talent
Semicon 2.0 also places significant emphasis on research, innovation and skill development. Investments will be directed towards advanced semiconductor technologies, academic partnerships and specialised training programmes to ensure the availability of a highly skilled workforce for the industry’s future needs.
The government believes this will help India remain competitive in a rapidly evolving global semiconductor market.
What It Means For India
With rising global demand for semiconductors across artificial intelligence, electric vehicles, telecommunications and consumer electronics, Semicon 2.0 aims to position India as a reliable global manufacturing and innovation hub. The initiative is expected to attract fresh investments, create high-skilled employment and strengthen the country’s long-term technological capabilities.
Summary
The Union Cabinet has approved the ₹1,27,500 crore Semicon 2.0 programme to accelerate India’s semiconductor ambitions. The initiative focuses on chip design, manufacturing, research, materials, advanced packaging and skill development, with the objective of building a robust domestic semiconductor ecosystem, attracting global investments and making India a major player in the global chip industry.
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