**Executive Summary**
The Union Cabinet has approved Semicon 2.0 with a total budget outlay of Rs. 1,27,500 crore to develop India’s semiconductor design and manufacturing ecosystem. Building on the momentum of Semicon 1.0, this policy focuses on six strategic pillars to establish India as a global semiconductor hub, with the first fab scheduled for commissioning in 2028. The initiative aims to enhance supply chain resilience, national security, and technological leadership through advanced R&D and talent development.
**Key Points / Main Content**
**The Six Pillars of Semicon 2.0**
* **Design:** Aims to position India as a key semiconductor chip design IP country by deepening the ecosystem for startups and identifying building blocks for strategic and commercial products.
* **Machines and Materials:** Incentivizes companies involved in the R&D and manufacturing of essential materials, chemicals, gases, and machinery to build a sustainable precision manufacturing industry.
* **Setting up Fabs:** Focused on attracting manufacturers to establish silicon, compound semiconductor, discrete component, and display fabs.
* **ATMP/OSAT Industry:** Actively encourages the establishment of advanced Assembly, Testing, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) units.
* **Research & Development:** Shifts focus from current 28nm-110nm nodes to developing more advanced nodes and technologies in collaboration with domestic and international R&D centers.
* **Talent Development:** Expands training for students in 315 universities on complex chip design and EDA tools, while engaging the industry for clean room and fab construction training.
**Progress of India Semiconductor Mission (ISM) 1.0**
* **Manufacturing Milestones:** Twelve manufacturing units have been approved with a cumulative investment of over Rs. 1.64 Lakh Crore; three companies (Micron, Kaynes, and CG Semi) have already started commercial production.
* **Design Support:** Financial support has been approved for 24 design projects, and 105 startups/MSMEs have been granted access to industry-standard Electronic Design Automation (EDA) tools.
**Impact Analysis**
**Startups and MSMEs**
**Impact:** They receive enhanced financial support and access to critical EDA tools for designing chips and Systems on Chips (SoCs) for sectors like AI, IoT, and telecommunications.
**Action Required:** Successfully transition from the prototyping stage to the deployment stage for strategic and commercial applications.
**Academic Institutions and Students**
**Impact:** Over 315 universities and approximately 68,000 students benefit from specialized training on complex chip design and EDA tools.
**Action Required:** Universities must deepen the level of training provided and collaborate with the industry for specialized ecosystem training, such as fab construction.
**Manufacturing and R&D Companies**
**Impact:** Companies specializing in semiconductor machinery, chemicals, and gases gain access to new incentives and a growing domestic market.
**Action Required:** Scale up R&D and manufacturing operations to provide the foundational materials and machines required for a sustainable semiconductor ecosystem.
**Global Semiconductor Manufacturers (Fabs/ATMP)**
**Impact:** India is positioned as a viable alternative location for setting up advanced fabs and ATMP/OSAT units with long-term policy support.
**Action Required:** Manufacturers are encouraged to set up various types of fabs (Silicon, Compound, Display) and bring advanced technologies to the Indian market.
Key Entities Referenced
Semicon 2.0: The primary policy initiative approved with a budget of Rs. 1,27,500 crore to develop India's semiconductor design and manufacturing ecosystem across six strategic pillars.
India Semiconductor Mission (ISM): The specialized mission responsible for overseeing the progress, approvals, and financial support for semiconductor manufacturing and design units.
Semicon 1.0: The predecessor program that established the initial foundation and momentum for semiconductor projects and manufacturing units in India.
ATMP/OSAT Industry: A core strategic pillar of the policy focused on strengthening Assembly, Testing, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) units.
Cabinet
Cabinet approves Semicon 2.0 - Government
delivers on its commitment for a long-term policy
support to Semiconductors in India
प्रव तथ: 15 JUL 2026 3:09PM by PIB Delhi
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Semicon 2.0 for
the development of India's semiconductor design and manufacturing ecosystem, with a total budget outlay
of Rs.1,27,500 crore.
Recognising the requirement for a sustained and long-term support to Semiconductor sector in India and
also to build on the momentum generated under Semicon1.0, Semicon 2.0 aims to further the
Government's commitment towards putting our country on the semiconductor map of the world.
Semicon 2.0 is aimed to holistically build the semiconductor ecosystem on the following six pillars:
First pillar: Design: Semicon 2.0 will build upon the initial success in chip design. With 105 startups
already started developing chips, the focus is on deepening the design ecosystem. Further, building blocks
have been identified for the development of strategic and commercial products. Under Semicon 2.0, the
aim is to develop IPs, designs of chips and systems with this approach. The work under Semicon 2.0 will
place India as a key semiconductor chip design IP country.
Second pillar: Machines and materials: Companies involved in the manufacturing and R&D of the
machines and manufacturing of materials, chemicals and gases that are essential for manufacturing
semiconductors will be incentivized. This will lay the foundation for the sustainable growth of the
semiconductor industry. This will also help in developing the precision manufacturing industry in our
country.
Third pillar: Setting up more fabs: With the first fab scheduled to be commissioned in 2028, the world is
showing greater confidence in India’s semiconductor strategy. Efforts will be made to attract more
manufacturers to come to India and set up fabs to manufacture chips. This will include silicon fabs,
compound semiconductor fabs, discrete component fabs, display fabs, etc.
Fourth pillar: Further strengthening the ATMP/OSAT industry: With the success of ATMP units, the
world is now looking at India as an alternative location for setting up ATMP/OSAT units. These will be
actively encouraged with a focus on getting some of the most advanced ATMP technologies to India.
Fifth pillar: Research & Development: The semiconductor journey has started with 28nm-110nm as the
node. Now, the focus will be on developing more advanced nodes and other advanced technologies in
collaboration with leading R&D centres within and outside India.
Sixth pillar: Talent development: With 315 universities training students on complex chip design using
the latest EDA tools, around 68,000 students have already been trained. It will be developed further and
deepen the level of training while in college. Further, the industry will be actively engaged in deepening the
clean room, fab construction and other ecosystem training as well.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. Approach
of building the complete ecosystem, will catalyse semiconductor design and manufacturing in India.
Progress of ISM 1.0:
Manufacturing: So far, twelve (12) manufacturing units have been approved with a cumulative
investment of over Rs.1.64 Lakh Crore. These include one Silicon fab, one Silicon Carbide fab, an
integrated Gallium Nitride Micro LED Display Fab and nine (9) packaging units expected to cater to chip
requirements of sectors such as consumer appliances, industrial electronics, automobiles, power
electronics, telecommunications, aerospace, etc. Out of the 12 approved proposals, three companies,
Micron, Kaynes and CG Semi have started commercial production and one more are expected to start in
2026.
Design: Twenty-four (24) semiconductor design 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. These companies are engaged in designing chips and SoCs
for a range of strategic and commercial applications, including satellite communications, drones,
surveillance cameras, Internet of Things (IoT) devices, LED drivers, AI systems, telecom equipment, and
smart meters. These companies are at different stages of design and development and will enter the
deployment stage after successful prototyping.
****
MJPS
(रलीज़ आईडी: 2284784) आगंतुक पटल : 11404
इस वज्ञ को इन भाषाओ ंम पढ़: Urdu , ही , Marathi , Assamese , Bengali , Bengali-TR , Manipuri , Punjabi , Gujarati , Tamil , Telug
u , Kannada , Malayalam