Semicon 2.0
Why in News?
The Semicon India Programme Phase 2 (Semicon 2.0) is in the news because the Union Cabinet, chaired by Prime Minister Narendra Modi, officially approved the scheme on July 15, 2026.
Objectives & Targets
- Investment Mobilization: Aims to attract fresh commercial investments worth approximately ₹4,00,000 crore.
- Production Boost: Targets local semiconductor manufacturing output worth ₹2,00,000 crore during the scheme period.
- Job Creation: Anticipated to generate over 60,000 direct, high-skilled employment opportunities across the tech sector.
- Self-Reliance: Designed to achieve 75% domestic self-reliance in crucial chip manufacturing metrics by 2030.
- This upgraded version features a massive financial outlay of ₹1,27,500 crore, a significant step up from the ₹76,000 crore allocated to its predecessor, Semicon 1.0.
- While the first phase focused primarily on setting up infrastructure, Semicon 2.0 transitions towards deepening the domestic supply chain and establishing technological sovereignty.
The Six Pillars of Semicon 2.0
The policy framework is strategically divided into six core operational pillars to address the entire ecosystem:
The policy framework is strategically divided into six core operational pillars to address the entire ecosystem:
- Deepening Chip Design: Focuses on expanding domestic chip design infrastructure. It looks to scale up the 105 startups funded in phase one into major systems creators and owners of global Semiconductor Intellectual Property (IP).
- Localizing Machines & Materials: Incentivizes companies manufacturing precision fabrication tools, machinery, industrial gases, and specialty chemicals to curb heavy import dependency.
- Expanding Semiconductor Fabs: Continues to pitch and attract global investments to establish Silicon Fabs, Compound Semiconductor Fabs, and Display Fabs. (Note: India's first primary silicon fabrication plant is expected to open in 2028).
- Advanced Packaging Infrastructure: Strengthens local ATMP (Assembly, Testing, Marking, and Packaging) and OSAT (Outsourced Semiconductor Assembly and Test) capabilities by actively bringing complex, next-generation packaging tech to India.
- Advanced Research & Development: Shifts research priorities from mature processes (28nm–110nm nodes) toward the development of advanced sub-nanometer sub-nodes in close collaboration with global research hubs.
- Strategic Talent Development: Building on the 68,000 students already trained across 315 universities, it aims to scale advanced curricula focusing on clean-room protocols, fab operations, and Electronic Design Automation (EDA) tool sets.
Progress Carried Over from Phase 1.0
- Fab & Packing Units: Approved 12 commercial manufacturing projects with combined investments crossing ₹1.64 lakh crore.
- Active Production: Global players like Micron, Kaynes, and CG Semi have officially initiated commercial semiconductor packaging production in India.
- Start-Up Ecosystem: Provided 24 major semiconductor design projects direct financial funding, while offering over 105 startups plug-and-play access to high-end industrial software tools.
