Union Cabinet Clears INR 1.27 Lakh Crore Semicon 2.0 Programme to Strengthen India’s Chip Manufacturing Ecosystem

In a significant step towards strengthening India’s position in the global semiconductor industry, the Union Cabinet has approved the Semicon 2.0 programme with a budgetary allocation of ₹1.27 lakh crore. The initiative is designed to accelerate the development of a comprehensive semiconductor ecosystem by supporting chip design, manufacturing, research, innovation, and talent development across the country.

Building on the progress achieved under the first phase of the India Semiconductor Mission, Semicon 2.0 introduces a broader policy framework aimed at establishing a self-reliant and globally competitive semiconductor industry. The programme is expected to enhance domestic manufacturing capabilities while reducing dependence on imported semiconductor technologies.

The new mission adopts a six-pillar strategy that focuses on strengthening semiconductor fabrication, advanced packaging, design-led innovation, upstream supply chains, research and development, and workforce development. The government expects these measures to create a robust ecosystem that supports both domestic demand and export opportunities.

Officials estimate that the programme will attract substantial private investment, generate high-value employment, and encourage greater participation from global semiconductor companies. By expanding India’s manufacturing base and innovation capabilities, the initiative is expected to reinforce the country’s role in the international electronics supply chain.

The Cabinet approval reflects the government’s long-term commitment to positioning India as a leading destination for semiconductor manufacturing and advanced electronics. The programme is expected to complement other manufacturing initiatives and contribute significantly to the country’s vision of becoming a global technology and innovation hub.