India’s Semicon 2.0: Cabinet approves the ₹ 1.27 Lakh Crore to redefine India’s Tech

The cabinet approves Semicon 2.0 to support the long-term Semiconductor sector in India. It highlights the government’s commitment towards making India’s semiconductor manufacturing hub in the world. 

The Semicon 2.0 emphasises the requirement for sustainable and long-term support to the semiconductor sector in India. Also strengthen the momentum built under Semicon1.0. Semicon 2.0 is aimed at holistically building the semiconductor ecosystem on the following six pillars.

Building on the success of Semicon 1.0

The first phase of India's semiconductor mission successfully laid the groundwork. The chip design ecosystem witnessed explosive growth with 105 startups actively developing homegrown chips under Semicon 1.0. 

Semicon 2.0 builds upon the foundational success of Semicon 1.0. The new policy shifts the focus from early-stage design toward deepening the entire design ecosystem. It also focuses on scaling up strategic and commercially viable semiconductor product development. 

Key Pillars of the Semicon 2.0

Semicon 2.0 will build upon the initial success in chip design under Semicon 1.0 with 105 startups already started developing chips. It focuses on deepening the design ecosystem and development of strategic and commercial products. 

Pillar I: Semicon 2.0 aims to develop IP designs of chips and systems. It will help place India as a key semiconductor chip design IP country. 

Pillar II: The scheme will incentivise those companies that are involved in manufacturing and research and development, manufacturing materials, chemicals and gases. Companies that are essential for the development of semiconductor chips.

Pillar III: It will set up more fabs, with the first fab scheduled to be commissioned in 2028. The aim will be to attract more manufacturers to come to India and set up fabs to manufacture hubs. 

Pillar IV: Further strengthening theATMP/OSAT units. Setting up new units in an alternative location to encourage advanced ATMP technology in India. Assembly, Testing, Marking, and Packaging (ATMP) alongside Outsourced Semiconductor Assembly and Test (OSAT) are vital links in the semiconductor life cycle 

Pillar V: Promote Research & Development (R&D) to developing more advanced nodes (28nm-110nm ) and technologies in collaboration with leading R&D centres within and outside India. 

Pillar VI: Talent transformation and workforce development by recognizing that a high-tech industry requires high-tech minds.  It is centered on building a world-class talent pipeline. Semicon 2.0 will target engineering curriculum updates, specialized training programs and university partnerships. 

India is preparing a highly-skilled workforce capable of operating advanced fabs and design houses for decades to come.

What this Means for India’s Tech Future

The ₹1.27 Lakh Crore allocation is not just a financial investment.  It is a strategic blueprint for the future by addressing raw chemicals and IP design to actual fabrication and specialised talent. 

Semicon 2.0 ensures that India's tech ecosystem is built on solid and sustainable ground.

India's push into semiconductors arrives at the perfect time. Global supply chains continue to diversify with the first fab coming online in 2028 and hundreds of startups leading the design charge. The world is about to witness a massive shift in where its tech is conceived, designed and manufactured.