The Union Cabinet approved the second phase of the Indian Semiconductor Mission, Semicon 2.0, with an outlay of ₹1.28 lakh crore to strengthen India’s chip design and manufacturing ecosystem, the government announced today. The scheme targets six key areas including chip design, semiconductor equipment and materials, fabrication plants, assembly and testing units, research and development, and talent development.
Semicon 2.0 builds on the existing ecosystem by expanding support for India’s chip design sector, where 105 startups are currently developing chips. The policy will provide incentives for semiconductor equipment, chemicals, gases, and materials manufacturing to create a domestic supply chain. It also aims to attract chipmakers to establish fabrication plants in India, including silicon fabs and compound semiconductor fabs, with the country’s first semiconductor fab expected to be commissioned by 2028, according to a government statement reported by inc42.com.
This initiative is part of India’s broader strategy to reduce dependence on imports and develop a self-reliant semiconductor industry. The scheme continues support for assembly, testing, marking, and packaging (ATMP) units and outsourced semiconductor assembly and test (OSAT) facilities, focusing on attracting advanced packaging technologies. The move aligns with global trends where countries are investing heavily in semiconductor manufacturing to secure supply chains and boost technological capabilities.
The government’s announcement confirms that the ₹1.28 lakh crore Semicon 2.0 scheme will accelerate India’s chip ecosystem development, with the first domestic semiconductor fabrication plant slated for commissioning in 2028, marking a significant milestone in the country’s semiconductor ambitions.