The government has notified the Semicon 2.0 scheme with an outlay of ₹1.27 lakh crore to strengthen semiconductor manufacturing in India. The scheme will support chip design, fabrication, equipment manufacturing, assembly, packaging and testing.
Semiconductor Manufacturing Gets Support Across Six Segments
The semiconductor manufacturing initiative will provide fiscal support across six key segments of the semiconductor value chain. The focus will extend beyond chip fabrication to include design, manufacturing equipment, assembly, packaging and testing.
This wider approach is aimed at creating a stronger domestic semiconductor ecosystem. It will also encourage Indian companies to participate across different stages of chip development and production.
Semiconductor Manufacturing to Focus on Strategic Chips
The government will establish a high-level expert panel to identify strategically important semiconductor products that will qualify for incentives.
The panel will be jointly chaired by the Principal Scientific Adviser and the National Security Adviser. It will assess semiconductor products based on national importance and strategic priorities.
The move is expected to direct government support towards critical technologies and strengthen India’s technological capabilities.
Semiconductor Manufacturing to Reduce Import Dependence
The semiconductor manufacturing push is aimed at reducing India’s dependence on overseas chip supplies. Stronger domestic production can help improve supply-chain resilience for critical technologies.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw said India could eventually develop the capacity to meet up to 100% of domestic demand for products such as sensors.
The scheme will also encourage Indian companies to expand their capabilities in chip design and manufacturing.
Semiconductor Manufacturing to Support Key Industries
The semiconductor manufacturing ecosystem is important for industries including automobiles, telecommunications, electronics and defence.
The new scheme will support fabrication, packaging, testing and specialised equipment manufacturing. This could help build a more integrated domestic semiconductor supply chain.
The initiative will also promote innovation and expand India’s capabilities in advanced electronics.
Semiconductor Manufacturing Strengthens India’s Chip Ecosystem
The ₹1.27 lakh crore Semicon 2.0 scheme marks a major push for semiconductor manufacturing in India.
By supporting multiple stages of the semiconductor value chain, the government aims to strengthen domestic production, reduce overseas dependence and position India as a stronger player in the global semiconductor industry.
Source: Sarkaritel
