The government has officially notified the Semicon 2.0 scheme, allocating an outlay of Rs 1.27 lakh crore to strengthen India’s chip manufacturing ecosystem. The announcement, made in New Delhi on August 31, signals a major policy push to develop a comprehensive semiconductor value chain within the country.
The scheme is structured into six distinct segments that cover chip design by Indian firms, the establishment of units for capital equipment essential to production, semiconductor fabrication plants, as well as chip assembly, packaging and testing facilities. By providing sustained policy and fiscal support across these verticals, the government aims to catalyse investment and accelerate capability building throughout the entire semiconductor sector.
According to the official notification, Semicon 2.0 seeks to create resilient, trusted and sovereign semiconductor technologies. The focus will be on the design, development and deployment of target segment technologies that serve national strategic and critical infrastructure needs. This approach is intended to reduce dependence on external sources and enhance security of supply for key digital systems.
The programme also targets the local development of semiconductor intellectual property cores, chips, system‑on‑chips (SoCs) and modules for electronic products deemed of national importance. To achieve this, the scheme will support the creation of standard IP blocks for compute, memory, radio‑frequency, power, networking, sensors and related technologies, aligning research and production with strategic priorities.
