India Semicon 2.0 Approved with INR 1275 Billion to Boost Semiconductor Ecosystem

India has approved the Semicon 2.0 programme with a budget allocation of INR 1,275 billion after receiving Union Cabinet approval on July 15. The initiative is designed to strengthen the country's semiconductor ecosystem through investments spanning chip design, manufacturing equipment, fabrication facilities, advanced packaging, research and workforce development. Building upon the progress achieved under the earlier programme, the latest phase aims to accelerate domestic capabilities while supporting innovation across multiple stages of semiconductor production and encouraging long-term growth within the national electronics manufacturing sector.

Six strategic pillars shape Semicon 2.0

Semicon 2.0 is structured around six major focus areas comprising semiconductor design, machines and materials, fabrication plants, ATMP/OSAT facilities, research and development, and talent development. In semiconductor design, the government plans to expand support for the 105 startups already developing chips by encouraging the creation of semiconductor intellectual property along with chip and system-level designs. This approach seeks to strengthen indigenous innovation while helping companies move towards more advanced semiconductor technologies.

Manufacturing ecosystem receives wider support

The programme also extends support to manufacturers producing semiconductor fabrication equipment together with critical materials, specialty chemicals and industrial gases required for chip production. These measures are intended to strengthen domestic manufacturing capabilities and reduce reliance on imported technologies. In addition, the government plans to attract more silicon, compound semiconductor, discrete component and display fabrication facilities, following the country's first semiconductor fabrication plant that is currently scheduled to begin operations in 2028.

Advanced packaging, research and talent development

Higher-end ATMP and OSAT packaging technologies remain another important focus of the initiative. The research and development pillar aims to advance semiconductor capabilities beyond the currently targeted 28 nm to 110 nm process nodes. Alongside research investments, the talent development programme will expand chip-design education by building upon existing training initiatives that already cover 315 universities and have trained approximately 68,000 students, creating a stronger pipeline of skilled semiconductor professionals.

Progress reported under Semicon 1.0

The government also highlighted achievements under the earlier Semicon 1.0 programme. A total of 12 manufacturing units with proposed investments exceeding INR 1.64 billion have been approved, including one silicon fabrication facility, one silicon carbide fabrication plant, an integrated gallium nitride micro-LED display fabrication unit and nine semiconductor packaging facilities. In addition, 24 semiconductor design projects from startups and MSMEs have received approval, while 105 startups and MSMEs have been provided access to EDA tools for developing chips and system-on-chip solutions across multiple application areas.

Key highlights of the Semicon 2.0 programme

The programme combines manufacturing expansion with technology development and workforce creation to strengthen India's semiconductor industry over the long term.

• INR 1,275 billion allocated under Semicon 2.0.
• Six strategic focus areas cover the semiconductor value chain.
• Support extended to semiconductor equipment and material manufacturers.
• Additional fabrication plants targeted beyond the first fab planned for 2028.
• Advanced ATMP and OSAT technologies receive further promotion.
• R&D aims to move beyond existing 28 nm–110 nm technology nodes.
• Talent development expands programmes across 315 universities and 68,000 trained students.

Semicon 1.0 and Semicon 2.0 at a glance

According to the government, startups and MSMEs supported under the programme are developing semiconductor chips and system-on-chip solutions for applications including satellite communications, drones, surveillance cameras, IoT devices, LED drivers, artificial intelligence systems, telecom equipment and smart meters. These initiatives collectively aim to strengthen India's semiconductor value chain while encouraging innovation, manufacturing capacity and skilled workforce development across the country.

Frequently Asked Questions

What is India Semicon 2.0 and what does it aim to achieve?
India Semicon 2.0 is a government programme approved with a budget of INR 1,275 billion to strengthen the country's semiconductor ecosystem through investments in chip design, manufacturing equipment, fabrication plants, advanced packaging, research and talent development. The initiative builds on Semicon 1.0 by expanding domestic manufacturing capabilities, encouraging semiconductor innovation, supporting startups and MSMEs, attracting additional fabrication facilities, and developing a skilled workforce to enhance India's long-term competitiveness in semiconductor manufacturing and technology.