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Semicon 2.0: India’s Rs 1.27 lakh crore chip manufacturing plan

Semiconductor wafer (representative image), Wikimedia Commons, CC BY-SA 4.0

India’s Semicon 2.0 roadmap carries an outlay of Rs 1.275 lakh crore.

It was approved by the Union Cabinet in July 2026 and unveiled at SEMICON India 2026.

The plan is structured around six pillars, including fabrication and talent development.

It aims to create close to one lakh new jobs and support 200 chip-design start-ups.

India has set a longer-term target of a $200 billion domestic semiconductor market.

The three-day conference brought together more than 600 companies from 52 countries.

SEMICON India 2026 was themed ‘Silicon to Systems: Building the Ecosystem’.

The event was organised by the India Semiconductor Mission, the Ministry of Electronics and Information Technology, and SEMI.

Semicon 2.0 is described as the next phase of India’s broader semiconductor programme.

India has set a longer-term target of building a $200 billion domestic semiconductor market.

The India Semiconductor Mission was set up to coordinate the country’s chip manufacturing and design push across ministries.

Global semiconductor supply chains have been a focus for many governments in recent years, given their importance to electronics, automotive and defence industries.

India’s earlier semiconductor programme, under the original Semicon India initiative, approved several fabrication and packaging projects before Semicon 2.0 was unveiled.

State governments have also announced incentives to attract semiconductor investment alongside the central government’s programme.

Chip design, fabrication and packaging each require different kinds of infrastructure, talent and capital investment.

The government unveiled the Semicon 2.0 roadmap at SEMICON India 2026, held at Yashobhoomi in New Delhi.

The Union Cabinet had approved Semicon 2.0 in July 2026 with an outlay of Rs 1.275 lakh crore, or about $13.23 billion.

Semicon 2.0 is structured around six pillars: chip design, machines and materials, fabrication facilities, advanced packaging, applied research and development, and talent development.

The programme aims to create close to one lakh new jobs across the semiconductor ecosystem.

Semiconductor wafer (representative image), Wikimedia Commons, CC BY-SA 4.0

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