India Launches Semicon 2.0 With Rs 1.27 Lakh Crore Budget

The Government of India approved the Semicon 2.0 scheme in July 2026 with a total budget outlay of Rs 1,27,500 crore. The initiative aims to establish a domestic semiconductor design and manufacturing ecosystem, targeting high-growth sectors such as automotive, electric vehicles, IT hardware, and consumer electronics.

Led by the India Semiconductor Mission, the programme prioritizes chip fabrication plants in the 28 to 110 nanometre legacy-node range and increases incentives for advanced packaging. Amitesh Kumar Sinha, CEO of the mission, stated the government aims to capitalize on global demand for legacy manufacturing and a desire among companies to diversify their footprints. The new phase increases the number of outsourced semiconductor assembly and test facilities to achieve self-reliance.

To foster a design ecosystem, the government targets the development of 100 fabless semiconductor companies, a goal Sinha described as doable. While 24 companies have already received approval, the mission is providing startups with financial assistance, infrastructure, and electronic design automation tools. The revamped framework removes previous funding caps of Rs 15 crore, potentially allowing support to range from Rs 50 crore to Rs 1,000 crore.

To sustain this growth, the government has equipped 320 to 340 institutes with design tools. IT Secretary S. Krishnan emphasized that the initiative will help Indian firms scale and strengthen indigenous intellectual property to create globally competitive products. To date, the government has approved 12 manufacturing units representing a cumulative investment exceeding Rs 1.64 lakh crore.