The Union Cabinet has approved Semicon 2.0, a Rs. 1.27 lakh crore program that marks India's biggest investment yet in semiconductor manufacturing. The initiative is designed to strengthen the country's chip ecosystem, reduce import dependence, and position India as a global hub for semiconductor design and production.
Unlike the first phase of the India Semiconductor Mission, which focused largely on fabrication and packaging, Semicon 2.0 expands support across the entire value chain.
The programme is built around six pillars, including chip design, semiconductor equipment and materials, fabrication plants, packaging and testing, research and development, and talent creation. It also introduces incentives for companies manufacturing critical inputs such as specialty chemicals, gases, and production equipment.
Under this initiative, the government hopes that international companies will manufacture chips while increasing their own domestic manufacturing capabilities amid rising demand for semiconductors in applications such as artificial intelligence, electric cars, phones, electronic gadgets, telecommunication, and defense.
This comes after successes achieved through Semicon 1.0, where several projects involving the manufacturing and packaging of chips in India were secured.
Experts in the industry feel that this program will ensure supply chain resilience, creation of skilled jobs, and increased investments in semiconductors. As nations fiercely compete for reliable chip supplies, Semicon 2.0 serves as the anchor for India’s long-term vision to become a dominant force in the global semiconductor industry.