Cabinet Approves ₹1.27 Lakh Crore Semicon 2.0 Programme

Under the India Semiconductor Mission, 12 manufacturing projects with investments exceeding ₹1.64 lakh crore have already received approval.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Semicon 2.0 with a budget of ₹1.27 lakh crore, giving a major boost to India's ambition of becoming a global semiconductor hub. The programme builds on the progress made under the first phase and expands government support across the entire semiconductor value chain, from chip design and fabrication to advanced research, manufacturing equipment and skilled talent. The initiative is designed to strengthen India's technological capabilities, improve supply chain resilience and support the country's growing electronics manufacturing sector.

Six pillars to drive India's next phase of semiconductor growth

Semicon 2.0 is built around six strategic pillars that cover every stage of semiconductor development. The Government plans to strengthen India's chip design ecosystem by supporting intellectual property creation and developing advanced semiconductor products. More than 105 startups are already working on chip designs, providing a strong foundation for future innovation.

The programme will also encourage companies manufacturing semiconductor equipment, speciality materials, chemicals and industrial gases, helping build a complete domestic supply chain. Fresh incentives will be offered to attract additional fabrication plants, including silicon fabs, compound semiconductor fabs, display fabs and discrete component facilities.

Advanced Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) units will receive further support as India seeks to attract cutting-edge packaging technologies. Research efforts will focus on developing advanced semiconductor nodes beyond the current 28nm-110nm range, while talent development programmes will expand training in chip design, clean room operations and fabrication technologies.

First phase lays the foundation for future expansion

Under the India Semiconductor Mission, 12 manufacturing projects with investments exceeding ₹1.64 lakh crore have already received approval. These include one silicon fabrication plant, one silicon carbide fab, one integrated gallium nitride Micro LED display fab and nine semiconductor packaging facilities. Three companies—Micron, Kaynes and CG Semi—have already started commercial production, while another facility is expected to begin operations during 2026.

India has also made steady progress in semiconductor design. Financial support has been extended to 24 chip design projects, while 105 startups and MSMEs have gained access to industry-standard Electronic Design Automation tools. These companies are developing chips for applications including artificial intelligence, satellite communications, drones, telecommunications, smart meters and Internet of Things devices.

With sustained investment across manufacturing, research, innovation and skill development, Semicon 2.0 is expected to strengthen India's position in the global semiconductor industry while supporting economic growth, technological self-reliance and future-ready manufacturing.