{"id":11713,"date":"2026-07-16T05:56:22","date_gmt":"2026-07-16T05:56:22","guid":{"rendered":"https:\/\/theeaglenews.co.in\/?p=11713"},"modified":"2026-07-16T05:56:22","modified_gmt":"2026-07-16T05:56:22","slug":"cabinet-approves-rs-1-27-lakh-crore-semicon-2-0-to-accelerate-indias-semiconductor-manufacturing-and-design-ecosystem","status":"publish","type":"post","link":"https:\/\/theeaglenews.co.in\/?p=11713","title":{"rendered":"Cabinet Approves Rs. 1.27 Lakh Crore Semicon 2.0 to Accelerate India’s Semiconductor Manufacturing and Design Ecosystem."},"content":{"rendered":"
<\/div>

Cabinet Approves Rs. 1.27 Lakh Crore Semicon 2.0 to Accelerate India’s Semiconductor Manufacturing and Design Ecosystem.<\/h1>\n

 <\/p>\n

New Delhi:<\/p>\n

 <\/p>\n

In a major boost to India’s ambitions of becoming a global semiconductor hub, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Semicon 2.0, a comprehensive programme with a budget outlay of Rs. 1,27,500 crore. The initiative is aimed at strengthening the country’s semiconductor design, manufacturing, research, talent development and supply chain ecosystem through long-term policy support.<\/p>\n

Building on the momentum generated under the India Semiconductor Mission (ISM) and the success of Semicon 1.0, the new programme seeks to position India among the world’s leading semiconductor nations by encouraging investments across the entire semiconductor value chain.<\/p>\n

Six-Pillar Strategy for a Complete Semiconductor Ecosystem<\/h4>\n

The government has structured Semicon 2.0 around six strategic pillars designed to create a robust and self-reliant semiconductor ecosystem.<\/p>\n

1. Strengthening Chip Design<\/p>\n

The first pillar focuses on expanding India’s semiconductor design capabilities. With 105 startups already engaged in chip development, the programme aims to deepen the country’s design ecosystem by supporting the creation of semiconductor intellectual property (IP), chip architectures and system designs for both commercial and strategic applications. The initiative is expected to establish India as a global hub for semiconductor design and IP development.<\/p>\n

2. Promoting Semiconductor Machines and Materials<\/p>\n

Recognising that semiconductor manufacturing depends heavily on specialised equipment and materials, the government will provide incentives for companies involved in manufacturing semiconductor machinery as well as essential materials, chemicals and industrial gases. This move is expected to strengthen domestic precision manufacturing capabilities while reducing dependence on imports.<\/p>\n

3. Encouraging More Semiconductor Fabs<\/p>\n

The third pillar focuses on attracting additional semiconductor fabrication plants (fabs) to India. With the country’s first silicon fab scheduled for commissioning in 2028, the government believes international confidence in India’s semiconductor strategy has increased significantly. Under Semicon 2.0, support will be extended to projects involving silicon fabs, compound semiconductor fabs, discrete semiconductor manufacturing units and display fabrication facilities.<\/p>\n

4. Expanding the ATMP\/OSAT Industry<\/p>\n

The government also plans to strengthen India’s Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) industry. Following the success of existing packaging projects, India is increasingly being viewed as an alternative destination for semiconductor packaging operations. The programme seeks to attract advanced packaging technologies and increase domestic manufacturing capacity.<\/p>\n

5. Advancing Research and Development<\/p>\n

India’s semiconductor manufacturing journey has begun with 28 nanometre to 110 nanometre process technologies. Under Semicon 2.0, the government intends to move towards more advanced semiconductor nodes and emerging technologies through collaborations with leading research institutions in India and abroad. The objective is to ensure that India remains competitive in next-generation semiconductor technologies.<\/p>\n

6. Developing Skilled Talent<\/p>\n

Talent development remains another major focus area. At present, 315 universities across the country are training students in advanced chip design using industry-standard Electronic Design Automation (EDA) tools, with nearly 68,000 students already trained. The programme aims to further enhance academic training while expanding industry-led programmes in clean-room operations, semiconductor fabrication, fab construction and manufacturing ecosystem skills.<\/p>\n

Strengthening India’s Economic and Strategic Capabilities<\/h4>\n

According to the government, Semicon 2.0 is expected to generate significant economic opportunities across multiple sectors while improving supply chain resilience and strengthening national security. By developing a complete semiconductor ecosystem\u2014from design and manufacturing to packaging, research and skilled manpower\u2014the programme seeks to establish India as a technologically advanced and globally competitive semiconductor destination.<\/p>\n

Significant Progress Under Semicon 1.0<\/h4>\n

The Cabinet also reviewed the achievements made under the first phase of the India Semiconductor Mission.<\/p>\n

Manufacturing Growth<\/h4>\n

So far, 12 semiconductor manufacturing projects have received government approval, involving cumulative investments exceeding Rs.1.64 lakh crore. These include:<\/p>\n

– One silicon semiconductor fabrication plant.
\n– One silicon carbide fabrication facility.
\n– One integrated gallium nitride (GaN) Micro LED display fabrication unit.
\n– Nine semiconductor packaging (ATMP\/OSAT) units.<\/p>\n

These facilities are expected to support critical industries such as consumer electronics, automobiles, industrial electronics, telecommunications, power electronics and aerospace.<\/p>\n

Among the approved projects, Micron, Kaynes and CG Semi have already commenced commercial production, while another manufacturing unit is expected to begin operations during 2026.<\/p>\n

Growth in Semiconductor Design<\/h4>\n

On the design front, the government has approved financial support for 24 semiconductor design projects undertaken by startups and MSMEs. Additionally, 105 startups and MSMEs have been provided access to industry-standard Electronic Design Automation (EDA) software tools.<\/p>\n

These companies are developing chips and system-on-chip (SoC) solutions for applications including satellite communications, drones, surveillance systems, Internet of Things (IoT) devices, LED drivers, artificial intelligence, telecommunications equipment and smart metering systems. Most of these projects are currently progressing through various stages of design and prototyping and are expected to move towards commercial deployment after successful validation.<\/p>\n

A Long-Term Vision<\/h4>\n

With the launch of Semicon 2.0, the government has reaffirmed its commitment to building a resilient and globally competitive semiconductor ecosystem. By combining financial incentives, infrastructure development, research support and talent creation, the programme aims to reduce import dependence, attract global investments, generate high-skilled employment and position India as a major player in the global semiconductor industry over the coming decade.If you’d like, I can also rewrite this in the style of a newspaper report for The Hindu, Indian Express, or Business Standard.<\/p>\n","protected":false},"excerpt":{"rendered":"

Cabinet Approves Rs. 1.27 Lakh Crore Semicon 2.0 to Accelerate India’s Semiconductor Manufacturing and Design Ecosystem.   New Delhi:   In a major boost to […]<\/p>\n

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