Semicon 2.0 is a comprehensive, macro-level national policy framework and government scheme designed to accelerate India's semiconductor design and manufacturing ecosystem. It is the second phase of the Semicon India Programme and a core component of the India Semiconductor Mission (ISM), which is overseen by the Ministry of Electronic and Information Technology (MEITy).
The scheme was officially approved by the Union Cabinet on July 15, 2026, with a massive budgetary outlay of ₹1,27,500 crore (approximately US$13.23 billion). It was created to build upon the momentum of the initial Semicon India Programme (Semicon 1.0), which was launched in December 2021 with an outlay of ₹76,000 crore. The problem it solves is India's strategic dependence on global semiconductor supply chains, aiming for complete self-reliance in advanced fabrication, tool chain design, and raw material processing.
Semicon 2.0 works through a six-pillar strategy to develop the entire semiconductor value chain. Key mechanisms include: Pillar 1 focuses on deepening the design ecosystem by turning India into a primary chip design Intellectual Property (IP) hub. Pillar 2 incentivizes firms manufacturing the heavy machinery, specialized chemicals, and high-purity gases essential for semiconductor fabrication. Pillar 3 expands global fabrication units, attracting investments for silicon fabs, compound semiconductor fabs, and display fabs, with India's first commercial silicon fab scheduled for commissioning in 2028. Pillar 4 strengthens advanced packaging by encouraging the setup of high-tech Assembly, Testing, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) units.
Semicon 2.0 connects directly to the broader India Semiconductor Mission (ISM) and other manufacturing initiatives like the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing. It replaced the initial Semicon 1.0 program, which focused primarily on establishing domestic chip manufacturing capacity. The core objective of placing India on the global semiconductor map remained the same, but the new phase significantly expanded the focus from just manufacturing to a holistic ecosystem development, increasing the budget from ₹76,000 crore to ₹1,27,500 crore.