THEBUSINESSBYTES
BUREAU
NEW
DELHI, AUGUST 31, 2026
Close to 10 per cent
of the global semiconductor industry’s market is expected to be in India in the
coming years, Union Minister for Electronics and Information Technology Ashwini
Vaishnaw said on Monday, as the government unveiled the six pillars of its
Semicon 2.0 scheme to take the country’s chip ecosystem to the next level.
Addressing the media
here, Vaishnaw said India had already achieved its target of developing 85,000
semiconductor engineers over 10 years in just four years and has now set a
fresh target of developing one lakh more engineers.
On the occasion,
notifications for all six pillars of the Semicon 2.0 scheme were issued,
marking a significant step towards strengthening India’s semiconductor design
and manufacturing capabilities.
“India achieved its target of developing
85,000 semiconductor engineers over a period of 10 years in just four years,
and has now set a new target of developing one lakh more engineers,” Vaishnaw
said.
“In the coming years, close to 10% of the
global semiconductor industry’s market is expected to be in India,” he added.
The minister said
students from Tier-II and Tier-III cities had already designed more than 250
chips, highlighting the growing depth of India’s semiconductor talent pool.
He also cited the
speed with which semiconductor projects were being implemented, saying that in
one case commercial production commenced within just 13 months of the
groundbreaking, while approvals were granted within 200 days, 150 days and even
90 days in multiple cases.
The semiconductor
ecosystem being developed in India is also expected to create 50,000-60,000
direct jobs, Vaishnaw said.
The Semicon 2.0
scheme builds on the momentum generated by the first Semicon India Programme
and provides fiscal and infrastructure support across the semiconductor value
chain, spanning chip design, fabrication and packaging to equipment, materials,
research and development and talent development.
The scheme is aimed
at strengthening India’s economic growth and national security by improving
semiconductor supply-chain resilience and establishing technological leadership
in critical sectors.
Semicon 2.0 will
operate through six pillars covering 10 categories.
The first pillar
focuses on design and covers the design of semiconductor intellectual
properties (IPs), chips, system-on-chips (SoCs) and modules for national
importance and strategic priorities; design of semiconductor IPs, chips and
SoCs for the commercial sector; and a Deployment-Linked Incentive (DLI) for
semiconductor IPs, chips and SoCs for deployment.
The second pillar
focuses on machines and materials and covers the semiconductor manufacturing
ecosystem.
The third pillar
seeks to facilitate the setting up of more fabrication facilities, covering
silicon semiconductor wafer fabs, compound semiconductors, photonics, sensors
including MEMS, discrete semiconductor fabs and display fabs.
The fourth pillar
aims at further strengthening the ATMP/OSAT industry, covering Semiconductor
Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor
Assembly and Test (OSAT) facilities.
The fifth pillar
focuses on research and development for advanced semiconductor technologies,
while the sixth is dedicated to talent development.
Projects supported
under Semicon 2.0 will generally have a duration of up to six years, while the
scheme will initially remain open for applications for three years.
The India
Semiconductor Mission (ISM) will be the nodal agency for Semicon 2.0. It will
invite applications, undertake technical and financial appraisal, recommend
applicants and oversee implementation.
ISM may implement the
design and deployment categories with the assistance of the Centre for
Development of Advanced Computing (C-DAC). The mission may also announce
semiconductor deep-tech awards from 2026 to promote niche innovation.
The Ministry of
Electronics and Information Technology will make budgetary provisions for
fiscal support, with disbursements undertaken by the nodal agency in accordance
with approved conditions.
A mid-term assessment will be conducted after three years of implementation, or as required, to evaluate the scheme’s impact and consider modifications or continuation.
The government expects the expanded programme to deepen domestic capabilities across the semiconductor value chain, strengthen supply-chain resilience and help position India as a significant global hub for semiconductor design and manufacturing.
