The Union Cabinet, chaired by Prime Minister Narendra Modi, cleared Semicon 2.0 on July 15, 2026, in New Delhi, sanctioning a complete outlay of Rs 1,27,500 crore to deepen India’s semiconductor design and manufacturing base. The scheme builds on the momentum of Semicon 1.0, aiming to increase long-term coverage help to the sector underneath the Ministry of Electronics & IT.
What is the Semicon 2.0 mission?
Semicon 2.0 is designed to develop a holistic home semiconductor ecosystem, shifting past one-off incentives towards sustained help throughout design, manufacturing, R&D, and expertise creation to position India on the worldwide semiconductor map.
Six Pillars of Semicon 2.0 Mission
Semicon 2.0 goals to holistically construct the semiconductor ecosystem on the next six pillars:
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First Pillar: Chip Design
India already has 105 startups constructing chips. Semicon 2.0 will assist them go additional — creating authentic chip designs and know-how (IP) so India turns into recognized globally as a chip-design hub, not only a manufacturing base.
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Second Pillar: Machines and Materials
Making chips wants particular machines, chemical compounds, and gases. The scheme will help firms that make these instruments in India, which additionally helps develop India’s broader precision manufacturing {industry}.
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Third Pillar: More Chip Factories (Fabs)
India’s first chip manufacturing unit is ready to open in 2028. Semicon 2.0 will work to usher in extra factories — for silicon chips, show chips, and different sorts — so India could make a wider vary of chips at residence.
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Fourth Pillar: Boosting Packaging and Testing Units (ATMP/OSAT)
After a chip is made, it must be packaged and examined. India has already discovered success right here, and the scheme will now strive to usher in extra superior world know-how for this stage.
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Fifth Pillar: Research & Development
India presently makes chips utilizing older, bigger know-how (28nm-110nm). The focus now shifts to growing smaller, extra superior chip know-how by working with prime analysis establishments in India and overseas.
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Sixth Pillar: Building Skilled Talent
About 68,000 college students throughout 315 universities have already been educated in chip design. This pillar will deepen that coaching and likewise construct hands-on expertise wanted for operating clear rooms and factories.
Overall, Semicon 2.0 is not nearly chips — it is meant to spice up the broader financial system, make India much less depending on different nations for essential know-how, and assist India lead in superior tech sectors globally.
Progress Made Under Semicon 1.0
Twelve manufacturing models have been permitted thus far, drawing a cumulative funding of over Rs 1.64 lakh crore, together with a silicon fab, a silicon carbide fab, and a gallium nitride micro-LED show fab. Three firms, Micron, Kaynes, and CG Semi, have already begun industrial manufacturing. On the design aspect, 24 tasks from startups and MSMEs have obtained monetary backing, whereas 105 corporations now have entry to industry-standard EDA instruments for functions spanning satellites, drones, IoT units, and AI techniques.