Cabinet approves Rs 1.27 lakh crore Semicon 2.0

The Union Cabinet on 15 July approved Semicon 2.0 with a budget outlay of ₹1,27,500 crore to strengthen India’s semiconductor design, manufacturing, and innovation ecosystem.

  • The programme builds on the progress of Semicon 1.0 and aims to position India as a global semiconductor hub.

Six Pillars of Semicon 2.0

  • Chip Design: Strengthening India’s semiconductor design ecosystem.
  • Equipment and Materials: Promoting domestic manufacturing of semiconductor equipment, materials, chemicals, and specialty gases.
  • Fabrication (Fab): Expanding semiconductor fabrication capacity by encouraging global companies to establish fabrication plants in India.
  • Packaging: Strengthening the Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) ecosystem.
  • Research and Development (R&D): Promoting semiconductor research, innovation, and technology development.
  • Talent Development: Building a skilled workforce for the semiconductor industry.

Key Highlights

  • India’s first semiconductor fabrication plant is expected to be commissioned in 2028.
  • Under the India Semiconductor Mission (ISM) 1.0, 12 semiconductor projects have been approved with a cumulative investment of over ₹1.64 lakh crore.
  • These include:
    • One silicon fabrication plant
    • One silicon carbide (SiC) fabrication unit
    • One integrated gallium nitride (GaN) Micro LED display fabrication facility
    • Nine semiconductor packaging units

Source: PIB

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