The Union Cabinet has approved the “Semicon India Programme 2.0” with a massive budgetary outlay of ₹1.275 trillion ($13.2 billion), marking a strategic evolution in the nation’s ambition to establish a globally competitive, end-to-end semiconductor ecosystem. Building on the initial ₹76,000 crore ISM 1.0 initiative—which focused primarily on attracting baseline fabrication plants and assembly units—the enhanced second phase broadens the policy framework across six comprehensive pillars. Beyond setting up additional silicon, compound, and display fabs alongside advanced packaging (ATMP/OSAT) facilities, the upgraded policy introduces financial incentives for raw materials, industrial gases, specialty chemicals, and semiconductor equipment manufacturing.
The revised plan also places strong emphasis on building domestic intellectual property (IP) through expanded chip design support for startups, shifting research focus toward sub-28nm process nodes, and developing a highly specialized clean-room workforce. Under ISM 1.0, the government approved 12 manufacturing projects worth over ₹1.64 lakh crore, with major players like Micron, Kaynes, and CG Semi already initiating commercial operations. By offering structured subsidies—including 40% fiscal support for silicon fabs—Semicon 2.0 targets local production for 70% to 75% of India’s domestic chip demand by 2029, positioning the country as a major global hub by 2035 while fortifying national supply chain resilience.
