New Delhi, 31 August (H.S.): The Central Government has notified the Semicon 2.0 scheme with an outlay of Rs 1.27 lakh crore to strengthen the entire semiconductor manufacturing ecosystem in the country. The Union Cabinet had approved the scheme in July 2026.

The Ministry of Electronics and Information Technology (MeitY) on Monday issued the official Gazette notification for the Semicon 2.0 scheme. According to the notification, the scheme aims to establish a complete semiconductor supply chain, covering the entire spectrum from design, machinery and raw materials to fabrication, testing and research.

Union Minister Ashwini Vaishnaw, while outlining the six pillars of Semicon 2.0 within India’s semiconductor ecosystem, said there is a strong belief among stakeholders in the global semiconductor industry that India is the right destination for large-scale investments over the coming decades.

He said the number of units approved under Semicon 1.0, along with the pace at which projects have progressed from approval to foundation-laying and subsequently to commercial production, clearly demonstrates this confidence. In one case, commercial production commenced within just 13 months of the foundation stone being laid.

Vaishnaw said that in several cases, all approvals were granted within the first 200 days or 150 days, while in one instance, approvals were secured within just 90 days. He said this pace had instilled significant confidence among global industry players.

“Capital expenditure support is globally competitive, while the availability of talent, policy certainty and ease of doing business have also contributed to the industry’s interest in establishing its base in India,” Vaishnaw said.

According to the notification, the scheme has been divided into six segments, including chip design by Indian companies, establishment of units manufacturing capital equipment required for semiconductor production, semiconductor fabrication, chip assembly, packaging and testing, among other activities.

The notification stated that the government has decided to provide continued policy support to the semiconductor sector by notifying the Semicon 2.0 scheme for the development of a semiconductor design and manufacturing ecosystem in India.

It further stated that Semicon 2.0 will provide financial support across the semiconductor industry’s broader value chain, ranging from chip design, manufacturing and packaging to various other segments of the semiconductor ecosystem.

The notification said the scheme would facilitate the development of essential technological components, including standard intellectual property (IP), for a range of applications such as computing, memory, radio frequency (RF), power, networking and sensors.

The scheme also seeks to develop robust, reliable and indigenous semiconductor technologies, with a focus on designing, developing and deploying targeted technologies for national strategic and critical infrastructure.

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Hindusthan Samachar / Jun Sarkar