India Building Semiconductor Future

The Union Cabinet approved Semicon 2.0 on 15 July 2026 with an outlay of Rs 1,27,500 crore, building on the implementation of Semicon 1.0 (approved in December 2021 with an outlay of Rs 76,000 crore). Semicon 2.0 advances India's semiconductor ecosystem through six strategic pillars: research and development, chip design, machines and materials, setting up more fabs, talent development, and strengthening the ATMP/OSAT industry. India's semiconductor demand is projected to reach USD 110 billion by FY2030 and exceed USD 200 billion by FY2035. The government reports that twelve semiconductor manufacturing units have been approved under the mission, with five commencing commercial production, supported by various policy schemes like the Design Linked Incentive (DLI) Scheme, SPECS, and the Electronics Components Manufacturing Scheme.