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The Union Cabinet has approved Semicon 2.0 with a ₹1.27 lakh crore budget to strengthen semiconductor manufacturing, chip design, R&D, talent development and fabrication in India.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Semicon 2.0, a flagship programme with a total outlay of Rs.1,27,500 crore, aimed at strengthening India's semiconductor design and manufacturing ecosystem and positioning the country as a global semiconductor hub.
Building on the momentum of the Semiconductor India Programme (Semicon 1.0), the new initiative provides long-term policy support to create a complete semiconductor ecosystem spanning research, design, manufacturing, talent development and supply chains.
Semicon 2.0 is structured around six key pillars. The first focuses on strengthening India's chip design ecosystem by supporting intellectual property (IP) creation, advanced chip and system design, and expanding the country's growing startup base, which already includes 105 companies developing semiconductor solutions.
The second pillar promotes domestic manufacturing of semiconductor equipment, materials, specialty chemicals and industrial gases, helping build a resilient supply chain while encouraging precision manufacturing.
The programme also seeks to attract additional fabrication plants, including silicon, compound semiconductor, discrete component and display fabs. With India's first semiconductor fabrication plant expected to be commissioned in 2028, the government aims to leverage increasing global investor confidence.
Another major focus is expanding Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) facilities by encouraging companies to establish advanced packaging technologies in India.
Semicon 2.0 also prioritises research and development by advancing beyond current 28nm to 110nm technology nodes through collaborations with leading domestic and international research institutions.
Talent development remains a core component of the programme. Around 68,000 students across 315 universities have already received training in chip design using advanced Electronic Design Automation (EDA) tools. The government plans to deepen industry-academia collaboration, including specialised training in clean-room operations, fabrication and semiconductor manufacturing.
The government said the programme will support economic growth across multiple sectors, strengthen supply-chain resilience, enhance national security and establish India's technological leadership in critical industries.
Under Semicon 1.0, the government has already approved 12 manufacturing projects involving investments exceeding Rs.1.64 lakh crore, including one silicon fab, one silicon carbide fab, an integrated gallium nitride Micro LED display fab and nine packaging units. Three companies, Micron, Kaynes and CG Semi, have commenced commercial production, while another unit is expected to begin operations in 2026.
In addition, 24 semiconductor design projects from startups and MSMEs have received financial support, with 105 startups gaining access to industry-standard EDA tools to develop chips for applications ranging from artificial intelligence and IoT devices to telecommunications, defence, aerospace and smart infrastructure.
