India Accelerates Semiconductor Self-Reliance with
₹1,27,500 Crore "Semicon 2.0"
Expansion
The Government of India has launched Semicon 2.0 with a total budget outlay of
₹1,27,500 crore to complete the end-to-end domestic chip value chain.
Building on the groundwork of Semicon 1.0, this phase
shifts focus from basic manufacturing facilities to a comprehensive ecosystem
encompassing raw materials, specialized machinery, advanced chip design,
research, and workforce development.
Key Strategic Pillars & Objectives
·
Six Core Pillars: Semicon 2.0 operates across six strategic
areas: chip design, machines and materials, fab setup, advanced packaging
(ATMP/OSAT), research and development, and talent pipeline creation.
·
Mitigating Import Vulnerabilities: Between FY17 and FY25, India spent approximately $150 billion on
semiconductor imports, currently relying on imports for 90% to 95% of its chip
consumption. Domestic demand is projected to hit $110 billion by FY2030 and
surpass $200 billion by FY2035.
·
Strategic Autonomy: The initiative aims to lower supply chain risks for critical
infrastructure, telecommunications (5G/6G), defense
systems, electric mobility, and AI applications.
Track Record under Semicon 1.0
·
Manufacturing Progress: Semicon 1.0 (approved in December 2021 with
₹76,000 crore) sanctioned 12 manufacturing units valued at over
₹1.64 lakh crore. As of 2026, five of these facilities have commenced
commercial production.
·
Design & Workforce Integration: Approved 24 design projects worth ₹900 crore and provided over
100,000 engineers across 500 organizations access to advanced design tools,
resulting in over 300 developed chip designs.
·
Global Footprint: India currently hosts nearly 20% of the world's semiconductor design
workforce and 7% of domain Global Capability Centres (GCCs).
Event Highlight
·
SEMICON India 2026: Prime Minister Narendra Modi inaugurated the SEMICON India 2026
conference (held September 17–19, 2026, in New Delhi) under the theme "Silicon to Systems: Building the
Ecosystem" to foster global manufacturing partnerships and
investments.