Government notifies Semicon 2.0 scheme with US$ 13.31 billion outlay
- IBEF
- September 1, 2026
The government has notified the Semicon 2.0 scheme with an outlay of Rs. 1.27 lakh crore (US$ 13.31 billion) to boost the chip manufacturing ecosystem in the country. Union Minister for Electronics and Information Technology Mr. Ashwini Vaishnaw said India could account for nearly 10% of the global semiconductor industry market in the coming years and is expected to play a much bigger role in the global semiconductor value chain. He highlighted that the country has developed 85,000 semiconductor engineers in four years against a 10-year target and has now set a new target of developing one lakh more engineers, with the focus on embedding India firmly in the global value chain, from wafer fabrication to chip production. Mr. Ashwini Vaishnaw noted growing confidence among global semiconductor stakeholders in India as an investment destination, citing the speed of project execution under Semicon 1.0, India's talent pool, policy certainty and ease of working as key factors driving industry interest.
Mr. Ashwini Vaishnaw said the scheme aims to make India an indispensable part of the global semiconductor supply chain, with the ecosystem expected to support the industry's growth over the next 50 years. He noted that students from Tier-II and Tier-III cities have already designed more than 250 chips, with one project reaching commercial production within 13 months of groundbreaking, and approvals granted in as little as 90 days in some cases. The scheme is expected to create 50,000 to 60,000 direct jobs. The Ministry of Electronics and Information Technology said Semicon 2.0 builds on the first Semicon India Programme, offering fiscal and infrastructure support across chip design, fabrication, packaging, equipment, materials, R&D and talent development through six pillars covering 10 categories, with the India Semiconductor Mission (ISM) as the nodal agency and C-DAC assisting on design and deployment.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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