New Delhi: The Union Cabinet approved Semicon 2.0 with a budget outlay of ₹1.27 lakh crore to strengthen India’s semiconductor design, manufacturing and research ecosystem through long-term policy support.
Prime Minister Narendra Modi chaired the Cabinet meeting. The government said the programme will build on the progress of Semicon 1.0 and strengthen India’s position in the global semiconductor industry.
Semicon 2.0 will focus on six key areas. These include chip design, machines and materials, semiconductor fabrication units, ATMP and OSAT facilities, research and development, and talent development. Moreover, the programme aims to create a complete semiconductor ecosystem that supports innovation and advanced manufacturing.
Semicon 2.0 expands semiconductor ecosystem
The government said 105 startups have already started chip design activities. In addition, 315 universities have trained about 68,000 students using advanced Electronic Design Automation tools. The new programme will deepen design capabilities and expand industry-focused training.
Furthermore, the government will encourage companies to manufacture semiconductor equipment, materials, chemicals and gases in India. It also plans to attract more silicon, compound semiconductor, display and discrete component fabrication units while promoting advanced ATMP and OSAT facilities.
So far, the India Semiconductor Mission has approved 12 manufacturing units with investments exceeding ₹1.64 lakh crore. Three companies, Micron, Kaynes and CG Semi, have already started commercial production. Another unit is expected to begin production in 2026.
Meanwhile, the government has approved 24 semiconductor design projects from startups and MSMEs for financial support. It has also provided 105 startups and MSMEs access to industry-standard EDA tools. These companies are developing chips for satellite communications, drones, artificial intelligence, telecommunications, Internet of Things devices, surveillance systems and smart meters.
The government said Semicon 2.0 will strengthen supply chain resilience, support economic growth, improve national security and help India emerge as a global semiconductor hub.
