New Delhi, 15 July (H.S.):

The Central Government on Wednesday approved Semicon 2.0, a comprehensive programme aimed at strengthening India's semiconductor design and manufacturing ecosystem, with a total budgetary allocation of Rs 1.27 lakh crore.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the initiative to provide sustained and long-term support to the country's semiconductor sector. Announcing the Cabinet decisions at the National Media Centre, Union Information and Broadcasting Minister Ashwini Vaishnaw said the programme builds on the momentum generated under Semicon 1.0 and reaffirms the government's commitment to positioning India prominently on the global semiconductor map.

Under Semicon 2.0, the government has identified six key pillars to make India self-reliant in the semiconductor sector.

The first pillar focuses on promoting chip design by supporting Indian companies in developing advanced technologies and intellectual property (IP). The second pillar aims to encourage domestic manufacturing of semiconductor production equipment, chemicals, gases and other essential materials used in chip fabrication. The third pillar emphasises the establishment of additional semiconductor fabrication plants (fabs) across the country.

The fourth pillar seeks to strengthen the semiconductor packaging and testing industry, including Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) facilities. The fifth pillar will promote research and development in advanced semiconductor technologies through collaboration with leading national and international institutions. The sixth pillar focuses on creating a highly skilled workforce by training students and engineers in advanced semiconductor technologies through partnerships between universities and industry.

Vaishnaw said the initiative will strengthen India's entire semiconductor ecosystem, generate employment opportunities and accelerate the country's journey towards technological self-reliance.

He also highlighted the progress achieved under Semicon 1.0, stating that 12 manufacturing units have so far been approved with a cumulative investment exceeding Rs 1.64 lakh crore. Of the 12 approved proposals, three companies—Micron, Kaynes and CG Semi—have already commenced commercial production, while another company is expected to begin operations in 2026.

In addition, 24 semiconductor design projects proposed by startups and Micro, Small and Medium Enterprises (MSMEs) have been approved for financial assistance. The government has also provided 105 startups and MSMEs with access to industry-standard Electronic Design Automation (EDA) tools to support semiconductor innovation and product development.

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Hindusthan Samachar / Jun Sarkar