New Delhi, Aug 31: India is stepping up efforts to build a strong domestic semiconductor industry with the government notifying Semicon 2.0, a ₹1.27 lakh crore programme designed to strengthen the country’s capabilities across the chip manufacturing and technology ecosystem.
The six-year initiative will support areas including semiconductor design, chip fabrication, packaging and testing, research and development, manufacturing equipment and domestic chip technologies.
Electronics and Information Technology Minister Ashwini Vaishnaw also announced a high-level panel to identify semiconductor technologies and chips that are strategically important for India. The move is aimed at improving the country’s ability to secure critical technology and reduce dependence on overseas supply chains.
The programme is expected to encourage greater participation from Indian startups, technology companies and research institutions. It could also attract global semiconductor equipment and technology players to establish operations in the country.
The semiconductor push has wider implications for India’s manufacturing ambitions. Chips are essential to automobiles, smartphones, telecommunications equipment, computers, consumer electronics, defence systems and several emerging technologies.
A stronger domestic chip ecosystem could help India attract fresh investments, create high-skilled employment and increase its role in global electronics supply chains. It may also encourage greater domestic value addition and reduce supply-chain risks for industries dependent on imported components.
The government’s focus on strategic chips, design capabilities and advanced manufacturing signals an effort to develop a semiconductor ecosystem that extends beyond assembly and testing.
With substantial financial support and a broader focus on the entire value chain, Semicon 2.0 is expected to play an important role in India’s long-term technology and manufacturing growth.
