THEBUSINESSBYTES BUREAU

NEW DELHI, SEPTEMBER 17, 2026

India’s semiconductor ambitions are entering a new phase with the government’s Semicon 2.0 programme seeking to build a comprehensive ecosystem spanning chip design, equipment and materials, fabrication, advanced packaging, research and development, and talent, Electronics and IT Minister Ashwini Vaishnaw said on Thursday.

Addressing the media on the sidelines of SEMICON India 2026, Vaishnaw said investment commitments of around ₹1 lakh crore, equivalent to about USD 11-12 billion, have already been received under the Semicon 2.0 ecosystem.

The investments are expected to generate close to one lakh new employment opportunities across the semiconductor value chain, with the projects likely to materialise over the next two to three years, he said.

Companies, however, will announce their respective investments as and when they secure the required board and shareholder approvals.

 “Semicon 1.0 was about putting the foundation in place. Semicon 2.0 is about putting the wider ecosystem in place,” Vaishnaw said, outlining the government's approach to developing capabilities across the semiconductor value chain.

The expanded programme will rest on six broad pillars, with a particular emphasis on scaling India's semiconductor design capabilities and creating the supporting ecosystem required for large-scale manufacturing.

Under the design pillar, the government is targeting 200 semiconductor design start-ups, while providing support for fabless companies, access to funding and venture capital, customer discovery and intellectual property protection.

Vaishnaw said 20 of the 105 semiconductor start-ups supported during the first phase have already secured venture capital funding. The next phase will also encourage companies to move beyond individual chip design towards systems design.

The second pillar will focus on machines, equipment and materials required for semiconductor manufacturing. The minister said global capital equipment companies are showing increasing interest in establishing operations in India, including design and manufacturing capabilities.

India's existing strengths in semiconductor design and precision manufacturing, he said, could support such companies while creating high-quality employment opportunities.

The third pillar will focus on expanding fabrication capabilities across technologies including display, memory, silicon, compound and logic fabs. According to the minister, confidence among global semiconductor companies is increasing, with growing interest in establishing manufacturing capabilities in India.

Advanced packaging constitutes the fourth pillar, with the government seeking to build capabilities that can improve semiconductor efficiency and system-level performance.

The fifth pillar will promote applied research and development involving industry, government and academia. Under the proposed approach, industry will identify projects, contribute funding alongside the government and work with academic institutions to develop technologies with tangible outcomes.

Talent development forms the sixth pillar. Around 400 universities and institutes are already engaged in semiconductor chip-design education under the first phase, while Semicon 2.0 will seek to upgrade curricula to enable students to progress from foundational chip design to systems design.

The government has also set a target of training one lakh technicians over five years. The programme will involve partnerships with industry and international institutions, including Taiwan's ITRI, with training aligned to the requirements of India's emerging semiconductor manufacturing facilities.

Vaishnaw stressed that the government's objective extends beyond setting up individual semiconductor plants and is aimed at building the ecosystem around them, including domestic capabilities in capital equipment, materials, gases, chemicals, precision manufacturing and supply chains.

The development of such capabilities is expected to deepen the domestic ecosystem while strengthening the resilience of India's semiconductor supply chains, particularly as companies globally seek to diversify manufacturing and sourcing networks.

Global competitiveness in terms of quality and cost will remain a key consideration throughout the semiconductor project cycle, from selection and construction to commercial production, the minister said.

He added that semiconductor facilities that have already entered commercial production are competing in global markets, with their production capacity being taken up by customers, while capacity at projects under construction is being created at a rapid pace.

SEMICON India 2026 also witnessed a series of agreements and announcements covering manufacturing, packaging, materials, equipment, design and workforce development.

Suchi Semicon and eInfochips exchanged the first batch of commercial devices, while Tata Electronics and Nexperia signed an MoU covering semiconductor wafer manufacturing, assembly and test, technology collaboration and innovation.

Tata Electronics also signed an MoU with Ascendas First Space for developing a 363-acre vendor park to support the semiconductor fab supplier ecosystem in Dholera, Gujarat. Separate agreements with Fujifilm and JSR Corporation will support localisation of critical semiconductor materials, including photoresists and advanced chemicals.

Tata Electronics and BESI Singapore signed an MoU focused on advanced semiconductor packaging capabilities in India, while an agreement with the Semiconductor Laboratory will cover semiconductor design services, process technology, supply-chain localisation and talent development.

Other initiatives include talent-development programmes involving Tata Electronics, Gati Shakti Vishwavidyalaya, L&T EduTech and Jacobs Solutions, as well as collaborations involving Kaynes Semicon, OptoML India, GridCrest Technologies and Sensesemi for advanced packaging, assembly, testing and System-on-Module solutions.

The India Semiconductor Mission and Intel India launched an “Introduction to Semiconductors” course, while Intel India and New Age Makers' Institute of Technology signed an MoU for developing a future-ready workforce in AI and semiconductor technologies.

HORIBA also inaugurated its HORIBA KOACH Experience Centre, while Sensesemi Technologies and GridCrest Technologies announced an MoU for smart metering solutions.

Six ChipIN Regional Centres were announced to expand access to chip-design capabilities and widen participation in semiconductor design across the country.

Commercial production of CDIL semiconductors was also announced, along with an association with Japan's Shindengen Electric Manufacturing Company for development of semiconductor packages.

Vaishnaw said India's semiconductor journey would require sustained and calibrated efforts across multiple layers of the value chain, including design, manufacturing, equipment, materials, packaging, R&D, talent and supply chains.

The objective, he said, is to build a resilient ecosystem capable of supporting India's semiconductor industry over the coming decades while creating high-quality employment and strengthening domestic technological capabilities.

SEMICON India 2026, being held at Yashobhoomi in New Delhi from September 17 to 19, features more than 600 participating companies and is expected to attract around 50,000 visitors. Representatives from 52 countries, more than 400 executives and over 150 speakers are participating in the event.

The exhibition features country pavilions from Japan, South Korea, Malaysia, the Netherlands, Singapore and Sweden, along with 12 state booths, a Startup Pavilion, Innovation Showcase, Student Hackathon and Workforce Development Pavilion.