Why in News?
Union Minister Ashwini Vaishnaw on 31 August 2026 announced that notifications for all six pillars of Semicon 2.0 have been issued. The next phase aims to expand India’s semiconductor ecosystem beyond chip manufacturing and strengthen the entire value chain.
Key Highlights
- Semicon 2.0 builds on the Semicon India Programme (Semicon 1.0).
- It covers the entire semiconductor ecosystem, including chip design, manufacturing, packaging, equipment, materials, R&D and skilled manpower.
The scheme focuses on:
- Building resilient domestic supply chains
- Reducing strategic vulnerabilities
- Increasing domestic value addition
- Strengthening India’s role in global semiconductor supply chains
Six Pillars of Semicon 2.0
Design
- Support for semiconductor IPs, chips, SoCs and modules for strategic and commercial applications.
- Start-ups and MSMEs can receive support such as seed funding, IP and EDA tool assistance.
- A Deployment-Linked Incentive (DLI) will help companies meet the high cost of chip tape-outs.
Machines and Materials
- Develop a stronger domestic ecosystem for semiconductor manufacturing equipment, materials and related industries.
Setting up More Fabs
- Support for silicon wafer fabs.
- Development of compound semiconductor, photonics, sensors, MEMS and discrete semiconductor fabs.
- Support for display fabs.
ATMP/OSAT
- Strengthen semiconductor Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) facilities.
Research & Development
- Promote R&D in advanced semiconductor technologies and encourage innovation in semiconductor deep-tech.
Talent Development
- Develop a larger pool of skilled semiconductor engineers and professionals to meet the industry's growing requirements.
India’s Semiconductor Progress
According to Ashwini Vaishnaw:
- India achieved its target of developing 85,000 semiconductor engineers in just four years, against the original 10-year target.
- The government now aims to develop one lakh additional semiconductor engineers.
- Students from Tier-II and Tier-III cities have already designed more than 250 semiconductor chips.
- India could account for nearly 10% of the global semiconductor market in the coming years.
- The developing semiconductor ecosystem is expected to create around 50,000–60,000 direct jobs.
Implementation
- India Semiconductor Mission (ISM) will be the nodal agency for Semicon 2.0.
- The scheme will initially accept applications for three years.
- Supported projects will generally have a duration of up to six years.
- A mid-term assessment will be conducted after three years to evaluate the scheme’s impact.