India Launches Semicon 2.0 with Rs 1,27,500 Crore Outlay

The Government of India approved the Semicon 2.0 programme in July 2026 with a budget outlay of Rs 1,27,500 crore to build a domestic semiconductor design and manufacturing ecosystem. This second phase expands on the India Semiconductor Mission (ISM) 1.0, shifting focus toward chip fabrication plants in the 28 to 110 nanometre legacy-node range and increasing incentives for advanced packaging and outsourced semiconductor assembly and test (OSAT) facilities.

CEO of the India Semiconductor Mission Amitesh Kumar Sinha stated that the government aims to nurture 100 fabless semiconductor companies, a goal he described as doable. While 24 companies have already received approval, the mission is providing startups with financial assistance and electronic design automation (EDA) tools. Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association, noted that the new framework removes previous funding caps of Rs 15 crore, potentially allowing support between Rs 50 crore and Rs 1,000 crore.

To translate these capabilities into commercial products, IT Secretary S. Krishnan emphasized the need to strengthen indigenous intellectual property and attract private investment. These goals were highlighted during the second India Fabless Semiconductor Design Acceleration Workshop at IIT Delhi.

Recent executions include Prime Minister Narendra Modi's inauguration of Andhra Pradesh's first semiconductor facility in Visakhapatnam. Developed by ASIP Technologies Pvt Ltd and South Korea's APACT, the Rs 460 crore plant has an annual capacity of 96 million chips. To date, 12 manufacturing units representing over Rs 1.64 lakh crore in investment have been approved across six states.