Centre approves Semicon 2.0 scheme with ₹1.27 lakh crore package to catalyse domestic industry
The Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the much-awaited Semicon 2.0 scheme with a total budgetary outlay of ₹1.27 lakh crore to catalyse the domestic manufacturing and design of semiconductors.
“Recognising the requirement for a sustained and long-term support to Semiconductor sector in India and also to build on the momentum generated under Semicon 1.0, Semicon 2.0 aims to further the government’s commitment towards putting our country on the semiconductor map of the world,” the Centre said in an official statement.
Semicon 2.0 is aimed to holistically build the semiconductor ecosystem on six pillars, including design, machines & materials, semiconductor fabs, strengthen OSAT/ATMP industry, support research & development in advanced nodes, and develop sector-specific talent.
“Further, Semicon 2.0 will support economic growth across all sectors, strengthen national security through enhanced supply chain resilience, and help establish technological leadership in critical sectors,” the government said.
So far, the PM Modi government has approved 12 manufacturing units with a cumulative investment of over ₹1.64 lakh crore. Out of these, three companies – the US-based Micron Technology, Kaynes and CG Semi – have started commercial production and one more is expected to commence operations in 2026.
In the design ecosystem, 24 semiconductor projects from start-ups and MSMEs have been approved for financial support, while 105 start-ups/MSMEs have been granted access to industry-standard Electronic Design Automation (EDA) tools, according to the statement.
