Semicon 2.0: Consolidating India's Chip Ecosystem

The Union Cabinet's recent approval of Semicon 2.0, carrying an outlay of ₹1,27,500 crore, marks the next stage of India's semiconductor journey. Building on the momentum of Semicon 1.0, the programme reflects the government's stated intent to provide sustained, long-term policy support and place India firmly on the global semiconductor map.

Six Pillars of the Programme

  1. Design: Deepens India's chip-design base, building on 105 startups already engaged in chip development, with an aim to position India as a leading semiconductor IP nation.
  2. Machines and Materials: Incentivises manufacturing and R&D of equipment, chemicals, and gases essential to chip production, strengthening precision manufacturing capability.
  3. Setting Up More Fabs: Encourages more silicon, compound semiconductor, discrete component, and display fabs, in line with the first fab's scheduled 2028 commissioning.
  4. Further Strengthening the ATMP/OSAT Industry: Strengthens assembly, testing, and packaging capacity, positioning India as an alternative global location for advanced ATMP technologies.
  5. Research & Development: Moves beyond the current 28nm–110nm nodes towards advanced technology nodes through domestic and international R&D collaboration.
  6. Talent Development: Expands training across 315 universities, building on the roughly 68,000 students already trained in chip design.

Challenges Ahead

Sustaining this momentum will require overcoming/addressing concerns related to:

  • Capital and cost intensity
  • Import dependence on advanced equipment
  • Talent-to-Deployment gap
  • Water and power infrastructure
  • Global demand cycles
  • Design-to-Commercialisation bottleneck

Summing Up

By linking design, manufacturing, and talent under one framework, Semicon 2.0 aims to strengthen supply chain resilience, national security, and India's long-term technological leadership.