India approves €13 billion Semicon 2.0 strategy
Chip manufacturing receives major support as India launches Semicon 2.0.
The Government of India has approved Semicon 2.0, a long-term strategy worth Rs. 1.275 trillion (approximately €13 billion) to accelerate the development of the country’s semiconductor design and manufacturing ecosystem.
Building on Semicon 1.0, the programme aims to strengthen India’s position across the semiconductor value chain through sustained public investment, industrial incentives and workforce development.
The strategy is organised around six pillars, such as semiconductor design, manufacturing equipment and materials, fabrication facilities, advanced packaging technologies, research and development, and talent development.
India plans to expand chip design capabilities, attract additional fabrication plants, encourage investment in ATMP and OSAT facilities, strengthen domestic production of critical materials and manufacturing equipment, and support the development of advanced semiconductor technologies.
The government also highlighted progress under Semicon 1.0. Twelve semiconductor manufacturing facilities have been approved with cumulative investments exceeding Rs. 1.64 trillion, covering silicon fabrication, silicon carbide, gallium nitride display manufacturing and advanced packaging. Three facilities have already entered commercial production, while additional projects are expected to become operational during 2026.
On the design side, 24 semiconductor startups have received financial support and 105 have gained access to advanced chip design tools to develop technologies for AI, IoT, telecommunications, satellite communications and smart devices.
According to the government, Semicon 2.0 is intended to strengthen India’s technological sovereignty, improve semiconductor supply chain resilience and establish the country as a globally competitive hub for semiconductor innovation, manufacturing and intellectual property.
Why does it matter?
Semicon 2.0 reflects the growing use of industrial policy to strengthen domestic semiconductor ecosystems amid global competition for advanced chip manufacturing. By investing across design, production, research and skills, India is seeking to reduce external dependencies while building long-term technological capacity.
The strategy also demonstrates that semiconductor competitiveness increasingly depends on developing the entire value chain rather than attracting fabrication plants alone. If successfully implemented, the programme could strengthen India’s position in global semiconductor supply chains while supporting wider ambitions in AI, telecommunications and advanced manufacturing.
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