India Launches Semicon 2.0 Scheme with Comprehensive Semiconductor Ecosystem Support
Union Minister for Electronics and Information Technology, Railways and Information & Broadcasting, Ashwini Vaishnaw, announced the notification of all six pillars of the Semicon 2.0 Scheme, marking a significant step in strengthening India's semiconductor design and manufacturing capabilities. The scheme builds on the first Semicon India Programme and provides fiscal and infrastructure support across the entire semiconductor value chain from chip design, fabrication and packaging to equipment, materials, research and development, and talent development.
The scheme aims to strengthen India's economic growth and national security by improving semiconductor supply-chain resilience and establishing technological leadership in critical sectors. It will operate through six pillars covering 10 categories: Pillar 1 - Design (covering Semiconductor IPs, Chips, System-on-Chips, and Modules for National Importance and Strategic Priorities, Commercial Sector designs, and Deployment-Linked Incentives); Pillar 2 - Machines and Materials (semiconductor manufacturing ecosystem); Pillar 3 - Setting up more Fabs (Silicon Semiconductor Wafer Fabs, Compound Semiconductors/Photonics/Sensors Fab, Discrete Semiconductors Fab, and Display Fabs); Pillar 4 - Strengthening ATMP/OSAT industry (Semiconductor Assembly, Testing, Marking and Packaging facilities); Pillar 5 - Research and Development (advanced semiconductor technologies); and Pillar 6 - Talent Development.
Minister Vaishnaw revealed that India achieved its target of developing 85,000 semiconductor engineers in just four years against an original 10-year target, and has now set a new target of developing 100,000 more engineers. He projected that close to 10% of the global semiconductor industry's market will be in India in the coming years. The minister also highlighted that students from Tier-II and Tier-III cities have designed more than 250 semiconductor chips, with commercial production commencing within just 13 months of groundbreaking in one case, while approvals were granted within 200 days, 150 days, and even 90 days in multiple cases. The semiconductor ecosystem is expected to create 50,000–60,000 direct jobs.
Projects supported under Semicon 2.0 will generally have a duration of up to six years, while the scheme will initially remain open for applications for three years. The India Semiconductor Mission (ISM) will serve as the nodal agency, responsible for inviting applications, undertaking technical and financial appraisal, recommending applicants, and overseeing implementation. ISM may implement the design and deployment categories with the assistance of C-DAC and may announce semiconductor deep-tech awards from 2026 to promote niche innovation. The Ministry of Electronics and Information Technology will make budgetary provisions for fiscal support, with a mid-term assessment conducted after three years of implementation to evaluate the scheme's impact and consider modifications or continuation.