The government has announced Semicon 2.0, allocating Rs 1.27 lakh crore to strengthen India’s semiconductor manufacturing and design ecosystem and expand its role in the global chip sector.

Union Minister for Electronics and Information Technology Ashwini Vaishnaw said India could account for nearly 10 percent of the global semiconductor market in the coming years. He added that the country is expected to play a significantly larger role in the semiconductor value chain as investments in manufacturing and design increase.

Speaking at a press briefing in New Delhi, Vaishnaw said the government’s key objective is to establish India as a participant across the semiconductor value chain, from wafer fabrication to chip manufacturing. The announcement follows notifications for all six components of the Semicon India Program 2.0.

According to the minister, global semiconductor companies increasingly view India as a suitable destination for investments over the coming decades. He highlighted the progress achieved under Semicon 1.0, particularly the speed at which approved projects moved from initial approvals to groundbreaking and, subsequently, commercial production.

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Vaishnaw also pointed to India’s skilled workforce, policy stability and ease of doing business as factors supporting the country’s growing attractiveness to semiconductor companies. These advantages, he said, are helping India strengthen its position as a hub for semiconductor production and chip design.

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The government’s objective is to make India an important part of the global semiconductor supply chain. As industries worldwide become dependent on semiconductor technologies, India aims to build domestic capabilities while attracting companies and investments.

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Semicon 2.0 is expected to build on the foundation created by the first phase, supporting the development of manufacturing capacity, design capabilities and a wider semiconductor ecosystem. The initiative reflects India’s ambition to reduce supply-chain vulnerabilities, encourage technology investments and establish the country as a competitive destination for semiconductor production and innovation.