Skip to main content

https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

What Is Semicon 2.0? Budget, Objectives, Six Pillars and Key Benefits Explained

The Union Cabinet has approved Semicon 2.0 with a total outlay of ₹1.27 lakh crore to strengthen India's semiconductor ecosystem through chip design, manufacturing, research, supply chain development, and talent creation.
Semicon 2.0
Indian Masterminds Stories

New Delhi: Semicon 2.0 has received Union Cabinet approval, marking a major step in India’s plan to become a global semiconductor hub. The government has approved a total budget of ₹1,27,500 crore to strengthen chip design, manufacturing, research, talent development, and supply chains. The policy aims to build a complete semiconductor ecosystem and reduce India’s dependence on imported chips.

The decision was approved by the Union Cabinet chaired by Prime Minister Narendra Modi on July 15, 2026. The new programme builds on the progress made under Semicon India 1.0 and focuses on long-term growth of India’s semiconductor industry.

What is Semicon 2.0

Semicon 2.0 is the next phase of India’s semiconductor mission. It is designed to support every important part of the semiconductor value chain, from chip design to manufacturing and skilled workforce development.

Read also: What is V2V Communication Technology? and How It can Boost Road Safety in India

The government wants India to become a trusted global destination for semiconductor production while improving supply chain resilience and technological self-reliance.

What are the Six Key Pillars of Semicon 2.0

1. Chip Design

The government will strengthen India’s chip design ecosystem by supporting startups and developing Indian intellectual property (IP). The focus will be on designing complete semiconductor chips and systems, helping India become a global centre for semiconductor design.

2. Semiconductor Machines and Materials

Companies manufacturing semiconductor equipment, chemicals, gases, and raw materials will receive incentives. This will help create a stronger domestic supply chain and reduce dependence on imports.

3. More Semiconductor Fabs

India plans to attract additional semiconductor fabrication plants (fabs), including silicon fabs, compound semiconductor fabs, display fabs, and discrete component fabs. The first semiconductor fab is expected to begin operations in 2028.

4. Stronger ATMP/OSAT Industry

The policy will further strengthen India’s Assembly, Testing, Marking and Packaging (ATMP/OSAT) sector. The government aims to attract advanced packaging technologies as global companies look for alternative manufacturing locations.

5. Research and Development

Semicon 2.0 will encourage advanced semiconductor research beyond the current 28nm-110nm technology. Indian institutions will work with leading research centres in India and abroad to develop next-generation semiconductor technologies.

6. Talent Development

Around 315 universities are already training students using industry-standard Electronic Design Automation (EDA) tools. More focus will be given to clean room training, fab construction skills, and advanced semiconductor education to prepare a skilled workforce.

Progress Under Semicon India 1.0

The government highlighted several achievements under the first phase:

  • 12 semiconductor manufacturing projects approved with investments exceeding ₹1.64 lakh crore.
  • Projects include one silicon fab, one silicon carbide fab, one gallium nitride Micro LED fab, and nine packaging units.
  • Companies like Micron, Kaynes, and CG Semi have already started or are preparing for commercial production.
  • 24 chip design projects have received financial support.
  • 105 startups and MSMEs have received access to professional EDA tools.
  • Around 68,000 students have already been trained in semiconductor design.

What is the Importance of Semicon 2.0

Semiconductors are the backbone of smartphones, computers, electric vehicles, telecom equipment, defence systems, medical devices, and artificial intelligence.

A strong domestic semiconductor industry will improve India’s manufacturing capability, strengthen national security, create high-quality jobs, and reduce reliance on imported chips. It will also support the country’s long-term vision of becoming a global technology and electronics manufacturing hub.

Read also: India Unveils NIDAR 2.0: MeitY Pushes Indigenous AI Drone Technology with VEGA Chips


Indian Masterminds Stories
Join our WhatsApp Channel
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
UPSC IFS Cadre Allotment 2025
J&K Posts 7 IFS Officers of 2024 Batch Across Forest Divisions, Anusha Kolli Gets Kathua Forest Division
mp forest recruitment
Madhya Pradesh to Modernise Forest Management with Technology, Recruit Forest Staff: CM Mohan Yadav
ifs punjab
Punjab: Retired IFS Officer Ramesh Chander Asked to Prove Citizenship During SIR Verification
mp CM Mohan Yadav Reviews Heavy Rainfall
CM Mohan Yadav Reviews Heavy Rainfall Relief in Madhya Pradesh’s Rewa, Shahdol and Jabalpur
BPSC
Bihar: BPSC Calls Viral 70th Exam Copy Fake, Confirms Two-Stage Exams and Negative Marking
art and culture departmentbihar
Bihar’s Amrapali Training Centres Nurture 3,000 Young Artists Across 33 Districts
Sambal Yojana 2
Madhya Pradesh CM Mohan Yadav Transfers ₹203 Crore to 9,149 Workers Under Sambal Yojana 2.0
cm yogi
Yogi Govt’s Big Move: IITs to Conduct Quality Audit of UP’s ₹100 Crore+ Infrastructure Projects
ADVERTISEMENT
ADVERTISEMENT
Videos
ChatGPT Image Aug 20, 2026, 05_46_21 PM
How IPS Officer Keshav Kumar Used Forensics to Crack Gujarat’s Lion Poaching Case
Shakeel Ahmad Ganie IRS Interview
‘My Path Has Not Been Straight’: Shakeel Ahmad Ganie’s Journey to the IRS
Sumit Ramteke tn
IPS Sumit Ramteke on the Cases That Changed His Career and Shook Organized Crime | Video Interview
ADVERTISEMENT
UPSC Stories
Naveen Kumar Saini UPSC CAPF
After 3 NDA Attempts and a 7-Mark Miss, Naveen Kumar Saini Gets AIR 7 in UPSC CAPF 2025
Naveen Kumar Saini secured AIR 7 in UPSC CAPF 2025 after multiple NDA and SSB failures and missing CAPF...
Pankaj Kamboj
Father Died, Family Turned to Farming: How Pankaj Kamboj Fought His Way to CAPF
After losing his father at 14 and helping his family survive through farming, Pankaj Kamboj turned repeated...
Prachi Jain
A Failed Prelims, A Fractured Leg & One More Shot: How Prachi Jain Made AIR 714
Prachi Jain secured AIR 714 in UPSC CSE 2025 after setbacks, injury and two interviews, and now prepares...
CSR NEWS
REC Foundation GEEF Global CSR Award
REC Limited Wins GEEF Global CSR Award 2026 for Excellence in Sports Development & Inclusion
REC Foundation recognised for using sports to promote youth empowerment, talent development, inclusion...
ongc
ONGC Signs MoA for ₹20 Crore CSR Support to Restore 700 Flood-Hit Schools in Assam 
CSR initiative will support restoration of around 650–700 schools, mainly in Sivasagar and Charaideo,...
IREDA Solar Projects
IREDA Inaugurates 170 kW On-Grid Solar Projects in Goa Under CSR Initiative
IREDA supports 80 kW and 90 kW solar projects at Agassaim and Bambolim to promote clean energy and reduce...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
UPSC IFS Cadre Allotment 2025
J&K Posts 7 IFS Officers of 2024 Batch Across Forest Divisions, Anusha Kolli Gets Kathua Forest Division
mp forest recruitment
Madhya Pradesh to Modernise Forest Management with Technology, Recruit Forest Staff: CM Mohan Yadav
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
ChatGPT Image Aug 20, 2026, 05_46_21 PM
Shakeel Ahmad Ganie IRS Interview
Sumit Ramteke tn
ADVERTISEMENT
ADVERTISEMENT