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India's Semicon 2.0 expands ecosystem and defence tech

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2026-09-01 08:56 UTC → 2026-09-09 13:04 UTC · added ~~removed~~

India is accelerating its technology roadmap through the Semicon 2.0 programme, providing a Rs 1.27 lakh crore ($13.25 billion) outlay to incentivize chip design, intellectual property, equipment, materials, advanced packaging, and R&D. While the first phase of the India Semiconductor Mission focused on ecosystem creation, ISM 2.0 aims to deepen capabilities in talent development and system design. The government has officially notified the Semicon 2.0 scheme, which provides fiscal support across the entire semiconductor value chain. The program is organized into six segments: chip design by Indian firms, the establishment of semiconductor fabrication plants (fabs), capital equipment production, chip assembly, packaging, and testing. To incentivize manufacturing, the scheme provides 40 per cent fiscal support for silicon fabs and 35 per cent for compound, display, and other specialized fabs. For the design sector, the government will offer support to startups and companies owned by Indian citizens or OCI through grants, equity co-investment, or royalty financing. Talent development initiatives may receive up to 75 per cent support. A primary objective is the local development of semiconductor Intellectual Property (IP) cores, System-on-Chips (SoCs), and modules for electronic products, including standard IPs for compute, memory, RF, power, networking, and sensors. This focus aims to develop resilient and sovereign technologies for national strategic and critical infrastructure. IT Minister Ashwini Vaishnaw noted that while India currently possesses chip-making capabilities at the 40nm level, the government has set a strategic roadmap to achieve advanced 7nm to 3nm technology within the next eight years. products. To support this, IT Minister Ashwini Vaishnaw announced a target to develop 100,000 additional semiconductor engineers to address a projected global talent ~~shortage of 1 million workers by 2032. To facilitate this, semiconductor~~ shortage. Semiconductor design programs have been expanded across 355 ~~universities, including institutions~~ universities. New specialized semiconductor and tech clusters are emerging in ~~tier-2~~ Andhra Pradesh, Gujarat, and ~~tier-3 cities.~~ Bhubaneswar. These hubs will focus on quantum computing, photonics, and Assembly, Testing, Marking, and Packaging (ATMP) capabilities, using Taiwan’s Hsinchu ecosystem as a strategic model. The government anticipates a total outlay of approximately USD 40 billion under the Semicon India 2.0 program as state-level support is integrated.

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