The Union government has announced the Semicon 2.0 programme with an investment outlay of ₹1.27 lakh crore, aimed at further strengthening India’s semiconductor manufacturing sector.
The initiative will be implemented across six key segments: chip design; semiconductor equipment and raw materials; manufacturing; packaging; research; and skill development.
Union Minister for Electronics and IT Ashwini Vaishnaw said the programme is designed to support long-term growth of the domestic semiconductor sector and help India become an important part of the global semiconductor supply chain. IT Secretary S Krishnan said the plan aims to build a self-reliant and globally competitive industry ecosystem.
Under the new scheme, eligible silicon chip fabrication units will receive financial support of up to 40% of qualifying capital expenditure. Support has been set at 35% for compound semiconductor and display fabs, 35% for advanced packaging projects, and 25% for conventional packaging projects.
The government has also set a target to train one lakh semiconductor design engineers over the next five years. Under Semicon 1.0, three plants—by Micron, Kaynes Semicon and CG Semicon—have begun commercial production this year, out of 12 projects approved in the first phase.
