India Unleashes Semicon 2.0: A USD 13 Billion Push to Lead Global Semiconductor Market

The Union Cabinet has approved Semicon 2.0, a comprehensive initiative with a budget of Rs 1.27 lakh crore to bolster India's semiconductor manufacturing sector. This program aims to enhance chip design, manufacturing, advanced packaging, and talent development, setting the stage for India to emerge as a global semiconductor powerhouse.

The Union Cabinet has sanctioned the ambitious Semicon 2.0 program, allocating a hefty budget of Rs 1.27 lakh crore (USD 13.17 billion) to revolutionize India's semiconductor manufacturing ecosystem. This initiative is a clear statement of the nation's intent to emerge as a pivotal player in the global semiconductor landscape.

Building on the achievements of Semicon 1.0, this new scheme focuses on six strategic pillars. These include bolstering the chip design ecosystem, fortifying the semiconductor supply chain, and encouraging investments in semiconductor manufacturing facilities. The program also prioritizes Assembly, Testing, Marking and Packaging (ATMP), and Outsourced Semiconductor Assembly and Test (OSAT), alongside advancing research and development.

To further India's semiconductor ambitions, the government is collaborating with key international semiconductor economies and attracting substantial investments from leading global firms such as Applied Materials, AMD, and Lam Research. These strategic moves underscore the growing international confidence in India's burgeoning semiconductor capabilities and ecosystem.