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18 September 2026

Semicon 2.0 Broadens India’s Chip Push to Design, Equipment, Materials and Skills

Around ₹1 lakh crore in investment commitments is expected to materialise over two to three years as India seeks to deepen capabilities across the semiconductor value chain

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Key Details

At SEMICON India 2026 on 17 September 2026, Electronics and IT Minister Ashwini Vaishnaw outlined Semicon 2.0’s implementation approach and reported emerging investment commitments.

Component

Announced direction or target

Investment and employment

Around ₹1 lakh crore in commitments; close to 1 lakh new employment opportunities expected across the ecosystem

Capability development

Six pillars: design, equipment and materials, fabrication, advanced packaging, applied R&D, and talent

Design enterprises

Target of supporting 200 semiconductor design start-ups

Workforce

Training 1 lakh technicians over five years through industry and international partnerships


Building on Semicon 1.0’s manufacturing and design base

Semicon 1.0 established a pipeline of 12 approved manufacturing units and 24 design projects approved for financial support. Semicon 2.0 deepens this base through equipment, materials, gases, chemicals and precision manufacturing, alongside broader fabrication capabilities. Advanced packaging, which assembles and connects chips, is a distinct priority for improving efficiency and system performance. Cabinet release

Design support connects chips, systems and customers

The programme targets 200 design start-ups, building on first-phase support under which 20 of 105 start-ups secured venture capital. Support for fabless companies—chip designers that outsource manufacturing—combines finance, customer access and intellectual-property protection. The push towards systems design extends capabilities beyond individual chips, while six ChipIN Regional Centres would widen access to design facilities.

Research and training follow industry requirements

Industry-proposed applied R&D would combine government and industry funding with academic participation. Curriculum upgrades across roughly 400 universities and institutes engaged in chip-design education would support progression towards systems design. Separately, 1 lakh technicians would be trained over five years, through industry and international partnerships, including with Taiwan’s Industrial Technology Research Institute (ITRI).

Supplier agreements give the ecosystem push concrete form

Agreements cover a 363-acre vendor park at Dholera, semiconductor materials and chemicals, and advanced packaging. They indicate planned supplier collaboration alongside separately reported commercial-device exchanges and production announcements. Around ₹1 lakh crore in investment commitments is expected to materialise over two to three years, with close to 1 lakh employment opportunities anticipated; these remain commitments and expectations rather than realised investment and jobs.


Policy Relevance

For India, the implementation test is whether expanding fabrication capacity also develops competitive domestic suppliers, design businesses and technical skills. The minister identified global quality and cost competitiveness as central considerations; localisation will therefore need to meet demanding customer requirements.

Two measures will be particularly useful:

  • Investment conversion: tracking commitments through company approvals, construction and commercial production, alongside actual employment.

  • Capability creation: assessing supplier qualification, design companies’ customer acquisition, usable R&D outputs and technician placement. Training numbers alone will not establish whether facilities’ workforce needs are being met.


Relevant Question for Policy Stakeholders: Which milestones will MeitY and the India Semiconductor Mission use to assess whether Semicon 2.0’s commitments are producing competitive domestic suppliers and sustained employment?


Follow the Full Release Here: PIB: Semicon 2.0 implementation approach and investment commitments

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