The Indian government’s revised equity norms under the Semicon 2.0 scheme aim to accelerate investments in advanced chip design by domestic companies. The new guidelines, announced recently, are expected to attract more capital into the semiconductor design sector, supporting the country’s ambition to become a global hub for chip innovation, according to the IT Secretary in a statement this week.
The updated equity norms provide clearer frameworks for foreign and domestic investors, easing restrictions and enabling more flexible ownership structures. This regulatory shift is part of the broader Semicon 2.0 initiative, which builds on the earlier semiconductor policy to enhance India’s capabilities in chip manufacturing and design. The IT Secretary highlighted that these changes would help Indian startups and established firms secure funding and scale their operations more effectively.
India’s semiconductor sector has been growing steadily, but limited access to investment has constrained its potential. The new equity norms under Semicon 2.0 are designed to address these challenges by making the investment climate more attractive. This move aligns with global trends where countries are strengthening semiconductor ecosystems amid rising demand for advanced chips. The policy is expected to complement other government efforts, such as incentives for manufacturing and R&D, positioning India competitively in the global semiconductor value chain.
The Semicon 2.0 scheme’s equity norms came into effect this month, with several Indian chip design firms already engaging with investors under the new framework. The government’s continued focus on this sector is evident as it prepares to review progress in the upcoming quarterly technology policy meeting scheduled for August.