India’s drive for trusted chip technology gains strong momentum as the government notifies the ambitious Semicon 2.0 scheme.
The program carries an outlay of Rs 1.27 trillion and aims to build a complete semiconductor ecosystem.
Officials unveiled a clear six-pillar strategy that covers design, manufacturing, packaging, materials, research and talent.
The move strengthens self-reliance and positions India as a competitive player in the global semiconductor value chain.
Decision-makers focus on long-term growth and strategic security. This policy support targets resilient and sovereign technologies for critical national needs.
The Union government notifies the Semicon 2.0 scheme on 31 August 2026. The Cabinet had approved the program on 15 July 2026. The notification details the implementation framework, incentives and eligibility criteria.
Electronics and Information Technology Minister Ashwini Vaishnaw states that the second phase builds an ecosystem for long-term sustainability. IT Secretary S Krishnan emphasizes self-reliance and global competitiveness. The scheme provides sustained fiscal support across the entire semiconductor value chain.
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Semicon 2.0 rests on six clear pillars. The first supports indigenous chip design, including IP cores, System-on-Chips and modules. The second focuses on semiconductor equipment, chemicals, gases and materials.
The third pillar backs silicon, compound semiconductor, display and specialized fabrication units. The fourth covers ATMP and OSAT facilities for advanced and conventional packaging. The fifth drives research and development. The sixth prioritizes talent development. Officials target training of one lakh semiconductor design engineers over five years.
Silicon semiconductor fabs receive 40 per cent support on eligible capital expenditure. Compound semiconductor fabs, display fabs and specialized units get 35 per cent support. Advanced packaging projects under ATMP and OSAT also receive 35 per cent, while conventional packaging gets 25 per cent.
The scheme targets local development of strategic IP cores for compute, memory, RF, power, networking and sensors. A high-level expert team will prioritize chips for national security and critical infrastructure. Startups and Indian-owned firms gain access to grants, equity co-investment and royalty financing for commercial design.
Under the earlier Semicon program, the government approved 12 projects across six states. Three facilities, Micron’s ATMP plant, Kaynes Semicon and CG Semi’s OSAT unit which have already begun the commercial production. These early successes raise global confidence in India’s semiconductor capabilities.
Vaishnaw notes that major equipment makers now plan to set up bases in India. This development creates opportunities for domestic suppliers and MSMEs. The government will evaluate new proposals with strict quality standards.
Semicon 2.0 marks a decisive step toward trusted and sovereign chip technology. The large financial outlay and comprehensive six-pillar approach address design, manufacturing and skills gaps together. Strong incentives attract investment while indigenous IP development reduces external dependence.
Success depends on consistent execution, skilled workforce expansion and quality project selection. If the program delivers, India can capture a larger share of the global semiconductor market and strengthen its position in strategic sectors. The policy creates a foundation for long-term technological self-reliance and economic competitiveness.
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