Cabinet Approves ₹1.28 Lakh Cr Semicon 2.0 To Boost India’s Chip Ecosystem
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The Union Cabinet today approved the second phase of the Indian Semiconductor Mission, Semicon 2.0, with an outlay of ₹1.28 Lakh Cr to strengthen India’s chip design and manufacturing ecosystem.
The scheme will focus on six areas — chip design; semiconductor equipment and materials; fabrication plants (fabs); assembly, testing, marking and packaging (ATMP)/ outsourced semiconductor assembly and test (OSAT) units; research and development; and talent development.
Under the design pillar, the government plans to expand support for India’s chip design ecosystem. The Centre, in a statement, said 105 startups are already developing chips and the new policy will back the development of semiconductor intellectual property (IP), chip designs and system level products.
The scheme will also extend incentives to companies manufacturing semiconductor equipment, chemicals, gases and materials required for chip production. The government said this is aimed at creating a domestic supply chain for semiconductor manufacturing.
On the manufacturing front, Semicon 2.0 is eyeing to attract more chipmakers to set up facilities in India, including silicon fabs, compound semiconductor fabs, discrete component fabs and display fabs.
The Centre said the country’s first semiconductor fab is expected to be commissioned in 2028.
The policy will also continue support for ATMP and OSAT facilities, with the government aiming to attract more advanced packaging technologies to India.
(The story will be updated soon)
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