Semicon 2.0 Gets ₹1.27 Lakh Crore Push for India's Chip Sector

The government has notified Semicon 2.0 with a ₹1.27 lakh crore outlay to strengthen India’s semiconductor ecosystem. The scheme covers chip design, fabs, equipment, assembly, packaging and testing, while supporting strategic technologies and domestic capabilities.

The Government of India has formally notified Semicon 2.0, a comprehensive programme with an outlay of ₹1,27,500 crore, aimed at strengthening the country’s semiconductor design and manufacturing ecosystem. The scheme provides long-term policy and fiscal support across the semiconductor value chain, from chip design and fabrication to packaging, testing and equipment manufacturing.

The programme builds on the momentum created under the first phase of the India Semiconductor Mission and seeks to establish India as a globally competitive destination for semiconductor technology. The government has structured Semicon 2.0 around six key segments, covering chip design, semiconductor fabrication, assembly, packaging and testing, capital equipment and other strategic areas of the ecosystem.

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A major focus of the initiative is strengthening India's domestic chip design capabilities. The programme aims to support the development of semiconductor intellectual property, chip designs and systems for strategic and commercial applications. More than 100 startups have already begun working on chip development, providing a foundation for expanding India's design ecosystem.

Semicon 2.0 will also support the creation of manufacturing capabilities for semiconductor fabrication and chip assembly, packaging and testing. This is intended to reduce dependence on overseas supply chains and build a more resilient domestic semiconductor industry. Support for manufacturing equipment is expected to further strengthen local capabilities across the value chain.

The scheme places particular emphasis on strategic and critical semiconductor technologies. A high-level mechanism will identify priority technologies and chips that are important for India's national security, critical infrastructure and technological sovereignty.

The notification comes after the Union Cabinet approved Semicon 2.0 in July 2026. The government has described the programme as a long-term commitment to developing India's semiconductor ecosystem and strengthening the country's position on the global semiconductor map.

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The expanded support is expected to encourage greater participation from domestic and international companies, attract investment and create opportunities for semiconductor startups, manufacturers and technology developers. Industry representatives have indicated that the programme could potentially catalyse more than ₹5 lakh crore in private investment over the next five to seven years.

With the formal notification, Semicon 2.0 moves from policy approval towards implementation, providing a broader framework for developing India's semiconductor capabilities and building a more self-reliant, trusted and globally integrated chip ecosystem.