New Delhi, July 15: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the ‘Semicon 2.0’ scheme to strengthen the domestic semiconductor design and manufacturing ecosystem following the success of ‘Semicon 1.0’. This ambitious initiative has a budget allocation of ₹1.27 lakh crore.
According to the government, 12 semiconductor manufacturing units have already been approved, with a total investment proposal exceeding ₹1.64 lakh crore. This includes one silicon fab, one silicon carbide fab, an integrated gallium nitride micro LED display fab, and nine packaging units. These facilities will cater to the chip requirements across various sectors, including consumer electronics, industrial equipment, automobiles, power electronics, telecommunications, and aerospace.
Among the approved projects, Micron, Keyence, and CG Semicon have commenced commercial production, while another unit is expected to start production in 2026.
The government has also promoted the startup and MSME sectors. So far, 24 semiconductor design projects have received financial support, and 105 startups and MSMEs have been granted access to cutting-edge electronic design automation (EDA) tools used in the industry.
As per the Cabinet’s statement, the goal of ‘Semicon 2.0’ is to build on the momentum gained from ‘Semicon 1.0’ and establish India as a key player in the global semiconductor industry.
The ‘Semicon 2.0’ initiative will be based on six key pillars:
1. Chip Design: The government states that 105 startups are already working on chip design. The focus will now be on strengthening the design ecosystem with indigenous chip and system design, as well as developing intellectual property (IP).
2. Machinery and Raw Materials: Companies involved in the manufacturing of machines, materials, chemicals, and gases used in semiconductor production will be incentivized. This is expected to lay a strong foundation for both the semiconductor and high-precision manufacturing industries in the country.
3. Establishment of New Fab Units: The government anticipates that the first semiconductor fab will commence operations by 2028. With growing global confidence in India’s semiconductor strategy, efforts will be made to attract more international companies to set up fabs in India.
4. Expansion of ATMP and OSAT Units: Following the success of ATMP units in India, the world is now viewing the country as an alternative manufacturing hub. The focus will be on bringing advanced ATMP technologies to India and increasing investment in this sector.
5. Research and Development (R&D): Currently, India’s semiconductor journey has begun with 28-nanometer to 110-nanometer technology. Collaborations with leading research institutions, both domestic and international, will focus on developing even more advanced technologies and new nodes.
6. Skilled Human Resource Development: The government reports that training in chip design is being provided at 315 universities using the latest EDA tools, with approximately 68,000 students trained so far. This training program will be further expanded and deepened to ensure students receive comprehensive training in cutting-edge semiconductor technologies at the college level.
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