India has taken another step towards building a stronger domestic semiconductor industry with the rollout of Semicon 2.0, a government initiative designed to expand capabilities across semiconductor design, manufacturing, packaging, research and talent development.
Hon’ble Union Minister for Electronics and Information Technology Shri Ashwini Vaishnaw announced the development on 31st August, 2026, with notifications issued for all six pillars of the scheme.
Semicon 2.0 builds on the earlier Semicon India Programme and aims to strengthen India’s semiconductor supply chain while supporting technological capability and resilience across critical areas.
Six pillars of Semicon 2.0
The scheme covers six key areas:
- Design: Semiconductor IPs, chips, SoCs and modules for strategic and commercial applications, along with deployment-linked incentives.
- Machines & Materials: Support for the wider semiconductor manufacturing ecosystem.
- New Fabs: Support for silicon wafer fabs, compound semiconductor and photonics fabs, sensors, MEMS, discrete semiconductors and display fabs.
- ATMP/OSAT: Further development of semiconductor assembly, testing, marking and packaging capabilities.
- Research & Development: Support for advanced semiconductor technology research.
- Talent Development: Building and expanding the semiconductor engineering talent pool.
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During the event, Hon’ble Union Minister Shri Ashwini Vaishnaw said: “India achieved its target of developing 85,000 semiconductor engineers over a period of 10 years in just four years, and has now set a new target of developing one lakh more engineers. In the coming years, close to 10% of the global semiconductor industry’s market is expected to be in India. Students from Tier-II and Tier-III cities have already designed more than 250 chips. In one case, commercial production commenced within just 13 months of the groundbreaking, while approvals were granted within 200 days, 150 days and even 90 days in multiple cases. The semiconductor ecosystem being developed in India is also expected to create 50,000–60,000 direct jobs.”
Semicon 2.0 projects will generally have a duration of up to six years, while applications will initially remain open for three years. The India Semiconductor Mission (ISM) will serve as the nodal agency for implementing the scheme. The initiative is expected to support the expansion of India’s semiconductor capabilities across the value chain, from chip design and fabrication to packaging, equipment, materials, R&D and skilled manpower.
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For India’s electronics and technology industry, Semicon 2.0 represents another step towards creating a broader and more resilient semiconductor ecosystem and increasing the country’s participation in the global semiconductor market.
