India has unveiled Semicon 2.0, a ₹1.27 lakh crore scheme aimed at creating a self-reliant and resilient semiconductor ecosystem, spanning from design to manufacturing, to reduce dependence on imports and foster strategic technology development.
India has formally launched Semicon 2.0, a ₹1.27 lakh crore package aimed at deepening the country’s semiconductor base and reducing reliance on imports, according to a government notification published on Sunday. The plan extends support across the chain, from chip design and fabrication to assembly, packaging and testing, while also backing equipment, materials and allied services needed to build out the industry.
The scheme is organised into six parts and is meant to help Indian firms design chips, support the setting up of capital equipment units, and encourage new fabrication plants, as well as assembly, testing and packaging facilities. According to the notification, the broader aim is to build “resilient, trusted, and sovereign” semiconductor technologies for strategic and critical infrastructure.
Officials also want to push domestic development of semiconductor intellectual property, or IP, the core designs used to build chips, along with chips, system-on-chips and modules for electronic products tied to national priorities. The notification said the programme will support standard building blocks for compute, memory, radio frequency, power, networking and sensors, reflecting a wider effort to create a full ecosystem rather than isolated manufacturing projects.
Business Standard reported earlier that the Union Cabinet approved the next phase on July 15, building on the earlier Semicon India programme launched in 2021. That first package, worth ₹76,000 crore, was designed to attract investment and create the foundations for India’s semiconductor industry; Semicon 2.0 expands that approach with a longer-term focus on research, advanced packaging, talent development and the upstream supply chain.
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