India's Semicon 2.0: Government expands incentives for semiconductor ecosystem beyond fabrication
- IBEF
- July 8, 2026
India is in the final stages of rolling out Semicon 2.0, an expanded version of its semiconductor mission that broadens government support beyond semiconductor fabrication units to cover the wider semiconductor ecosystem. The upcoming policy is expected to provide targeted incentives for chip design companies, assembly, testing, marking and packaging (ATMP) units, semiconductor equipment manufacturers, material suppliers and research institutions. By extending support across the value chain, the government aims to accelerate ecosystem development, reduce import dependence and strengthen supply chain resilience. The initiative also seeks to encourage innovation-led manufacturing while creating a more comprehensive and globally competitive semiconductor industry in India.
Semicon 2.0 places significant emphasis on building indigenous capabilities through stronger support for research and development, workforce training and semiconductor design startups. The policy reflects the government's strategy of moving beyond manufacturing capacity creation towards establishing a complete semiconductor ecosystem capable of serving global markets. It is expected to improve collaboration between industry, academia and technology players while encouraging investments across advanced manufacturing segments. By strengthening every stage of the semiconductor value chain from design and materials to packaging and innovation, India aims to position itself as a trusted global semiconductor destination. The initiative is expected to enhance technological self-reliance, attract high-value investments and generate long-term employment opportunities, supporting India's vision of becoming a leading global hub for electronics manufacturing and semiconductor innovation.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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