NEW DELHI — India is expanding its semiconductor manufacturing strategy with the launch of the Semicon 2.0 initiative, a programme approved by the federal cabinet to deepen domestic chip production, strengthen supply chains and attract fresh investment into the country's semiconductor ecosystem.
The programme carries a budget outlay of 1.275 trillion rupees ($13.3 billion) and builds on the government's earlier semiconductor mission, which sought to establish India as a global manufacturing and design hub for chips. Information and Broadcasting Minister Ashwini Vaishnaw said the initiative is intended to provide long-term policy support for semiconductor development and reduce dependence on imported components.
According to the government, Semicon 2.0 will focus on six areas: semiconductor design, equipment and materials, new fabrication plants, assembly, testing, marking and packaging (ATMP/OSAT) facilities, research and development, and workforce development. Officials said the broader scope is designed to strengthen the entire semiconductor value chain rather than concentrate solely on chip fabrication.
The programme follows progress under the first phase of the India Semiconductor Mission, under which the government said 12 semiconductor manufacturing projects with cumulative investments exceeding 1.64 trillion rupees have been approved. Three facilities, including those operated by Micron, Kaynes and CG Semi, have begun commercial production, while additional projects are expected to come online in 2026, according to official statements.
Government officials said the new initiative also aims to expand support for semiconductor design startups, encourage domestic production of manufacturing equipment, specialty chemicals and gases, and promote advanced research as India seeks to build a more resilient electronics manufacturing base. The programme is expected to complement broader efforts to increase domestic electronics production and strengthen India's position in global technology supply chains.
India has intensified efforts to attract semiconductor investment as governments worldwide seek to diversify chip production following supply disruptions and rising geopolitical tensions. Analysts say building a complete semiconductor ecosystem requires sustained investment across manufacturing, design, packaging and supporting industries, alongside skilled workforce development.
The government said implementation of Semicon 2.0 will proceed through the approved policy framework, with support measures for eligible projects to be rolled out under the programme's six pillars in the coming years.
