THE Union Cabinet on Wednesday approved Semicon 2.0, a new programme with a budget of Rs1.27 lakh crore (US$13.17 billion) to strengthen India’s semiconductor manufacturing ecosystem.
The scheme aims to support chip design, manufacturing, advanced packaging, research, talent development and the production of key equipment and materials needed for the industry. The programme builds on the progress made under Semicon 1.0 and reflects the government’s long-term commitment to making India a global semiconductor hub. Semicon 2.0 is based on six key pillars. The first pillar focuses on strengthening India’s chip design ecosystem. The government said 105 startups are already developing semiconductor chips.
The new scheme will support semiconductor intellectual property (IP), chip designs and systems for strategic and commercial use to position India as a leading chip design nation. The second pillar aims to develop the semiconductor supply chain by supporting companies involved in manufacturing and research of semiconductor equipment, materials, chemicals and gases. The government said this will help build a strong domestic ecosystem and improve precision manufacturing. The third pillar focuses on expanding semiconductor manufacturing by encouraging investments in silicon fabs, compound semiconductor fabs, discrete component fabs and display fabs.
The government said global confidence in India’s semiconductor strategy has increased, with the country’s first semiconductor fabrication plant expected to be commissioned in 2028. The fourth pillar aims to strengthen India’s Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) ecosystem by promoting advanced packaging technologies. The fifth pillar focuses on research and development to help India move beyond existing semiconductor technology nodes through collaboration with leading research institutions in India and abroad. The sixth pillar is dedicated to talent development.
The government said 315 universities are using advanced Electronic Design Automation (EDA) tools to train students, with around 68,000 students trained so far. Industry participation will also be expanded to develop specialized skills required for semiconductor manufacturing.
ANI
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