The Government of India has notified the Semicon 2.0 scheme with a total outlay of Rs 1.27 lakh crore, marking a major step towards strengthening the country’s semiconductor design and manufacturing ecosystem. The initiative is aimed at expanding India’s role in the global semiconductor value chain and building a resilient and self-reliant chip manufacturing sector.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw said the scheme will help India become more firmly embedded in the global semiconductor value chain, covering activities ranging from wafer fabrication and chip design to packaging and testing. He said the country could account for nearly 10 percent of the global semiconductor industry market in the coming years.
Semicon 2.0 provides fiscal support across the complete semiconductor value chain. The programme has been divided into six major segments, including semiconductor design by Indian companies, manufacturing of capital equipment required for chip production, semiconductor fabrication units, chip assembly, packaging and testing, as well as other important parts of the semiconductor ecosystem.
The scheme is designed to build resilient, trusted and sovereign semiconductor technologies for India’s strategic and critical infrastructure. It will focus on the design, development and deployment of technologies that are considered important for national priorities and strategic requirements.
A major focus of Semicon 2.0 will be the development of indigenous semiconductor intellectual property, chips, System-on-Chips and modules for electronic products. The programme also envisages the development of standard intellectual property building blocks covering areas such as computing, memory, radio frequency, power, networking and sensors.
The government said the new programme builds on the momentum created under Semicon 1.0. The progress made by projects under the earlier programme, particularly the movement from government approval to groundbreaking and eventually commercial production, has attracted significant attention from global semiconductor industry stakeholders.
According to the government, there is growing confidence among international semiconductor companies and investors that India can become an important destination for major investments in the sector over the coming decades. Semicon 2.0 is expected to provide sustained policy support to help create the infrastructure, technology capabilities and skilled workforce required for the industry.
The initiative is also expected to strengthen domestic supply chains and reduce India’s dependence on external sources for critical semiconductor technologies and components. By supporting activities across design, fabrication, assembly, packaging and testing, the government aims to create a more comprehensive semiconductor ecosystem within the country.
Industry representatives have welcomed the programme, saying it could encourage substantial private-sector investment across semiconductor fabrication, assembly and testing, equipment, materials, design and research and development. The India Electronics and Semiconductor Association has estimated that the programme could help catalyse more than Rs 5 lakh crore in cumulative private and industry investment over the next five to seven years.
The expanded semiconductor push is expected to generate opportunities for Indian technology companies, startups, research institutions and skilled professionals. Greater investment in chip design and manufacturing could also support the development of specialised talent and create new employment opportunities in high-technology industries.
The government believes that a strong domestic semiconductor ecosystem will be important for India’s growing electronics manufacturing sector. Semiconductors are critical components in smartphones, automobiles, telecommunications equipment, computers, defence systems, artificial intelligence infrastructure and a wide range of modern electronic devices.
With Semicon 2.0, India is seeking to move beyond being a major consumer and electronics manufacturing destination and establish itself as a significant global hub for semiconductor technology and production. The scheme represents a long-term effort to strengthen technological capabilities and improve India’s position in the global chip supply chain.
The notification of Semicon 2.0 is therefore being seen as a significant milestone in India’s semiconductor mission, with the government aiming to combine financial support, indigenous technology development, private investment, research and skilled manpower to build a globally competitive semiconductor ecosystem.
