New Delhi: The Union Cabinet has approved Semicon 2.0, a long-term policy initiative with a budgetary outlay of ₹1,27,500 crore to accelerate the growth of India’s semiconductor design and manufacturing ecosystem. The programme builds on the progress made under Semicon 1.0 and aims to strengthen the country’s capabilities across chip design, manufacturing, research, talent development and supply chain resilience.
The newly approved programme outlines a comprehensive strategy to develop India’s semiconductor industry through six major focus areas. The first pillar centres on expanding the country’s chip design ecosystem by supporting intellectual property creation, system design and commercial product development. According to the government, 105 startups have already begun chip development, providing a foundation for the next phase of growth.
Another key component of Semicon 2.0 is support for companies involved in manufacturing semiconductor equipment, materials, specialty chemicals and gases. The initiative is intended to strengthen domestic manufacturing capabilities while encouraging precision engineering within the sector.
The government will also work to attract additional semiconductor fabrication facilities. With India’s first semiconductor fab expected to be commissioned in 2028, the programme seeks to encourage investments in silicon fabs, compound semiconductor fabs, display fabs and other manufacturing units.
Support for the ATMP and OSAT ecosystem has also been expanded. The government plans to promote advanced packaging technologies as more global companies consider India as a manufacturing destination.
Research and development form another major pillar of the policy. While India’s semiconductor journey began with 28nm to 110nm technologies, Semicon 2.0 will focus on advancing research into next-generation semiconductor nodes and emerging technologies through collaboration with leading research institutions.
Talent development remains a significant priority. The government said 315 universities are currently training students using industry-standard Electronic Design Automation (EDA) tools, with nearly 68,000 students already trained. Additional efforts will focus on strengthening clean-room training, fabrication-related skills and industry-oriented education.
The government also highlighted progress under Semicon 1.0. So far, 12 manufacturing units have been approved with cumulative investments exceeding ₹1.64 lakh crore, including one silicon fab, one silicon carbide fab, one integrated gallium nitride Micro LED display fab and nine packaging units. Three companies—Micron, Kaynes and CG Semi—have already commenced commercial production, while another is expected to begin operations in 2026.
With Semicon 2.0, the government aims to reinforce India’s position as a global semiconductor hub while supporting economic growth, technological leadership and national supply chain resilience.
Source: This article is based on an official press release issued by the Press information Bureau, Ministry of Electronics & IT, Government of India
Press Release Page | Press Information Bureau
