India’s semiconductor push is entering a new phase with Semicon 2.0, a six-pillar programme aimed at building a wider chip-making ecosystem spanning design, manufacturing, equipment, advanced packaging, research and skilled talent. Explaining the government’s strategy at SEMICON India 2026 on Thursday, IT and Electronics Minister Ashwini Vaishnaw said the focus will be on strengthening the entire semiconductor value chain rather than concentrating on chip fabrication alone.
Vaishnaw said that the Semicon 2.0 programme has attracted investment commitments of around USD 11-12 billion across different segments of India’s semiconductor industry.
The investment interest covers a broad range of activities, including semiconductor equipment, materials, gases and chemicals, along with assembly, testing, marking and packaging (ATMP), substrates and wafers, he told press at the event. “The investment commitment numbers that we are seeing today, is of the order of about 11 to 12 billion dollars under Semicon 2.0,” Vaishnaw said.
The minister did not disclose the names of the companies involved, saying potential investors are expected to make formal announcements after obtaining approvals from their boards and shareholders.
Vaishnaw said the investment pipeline gives the government a clearer picture of how India’s semiconductor sector could expand under the second phase of its policy.
Semicon 2.0 has six pillars
The programme has been structured around six pillars covering chip design, semiconductor machinery and materials, fabrication, advanced packaging, research and development, and talent development.
The first pillar focuses on strengthening the chip-design ecosystem, with an emphasis on helping fabless companies scale up and access funding. The government also wants to bring more startups and larger companies into semiconductor design.
“The first and foremost thing is developing the design ecosystem, getting the fabless companies to scale up, get funding,” he said, adding that startups could develop innovative solutions.
The second pillar deals with semiconductor machinery and materials, which are critical to building a broader domestic supply chain. Vaishnaw said Applied Materials had announced a $5 billion investment, while Lam Research and other equipment companies were also considering a larger presence in India.
Companies will be able to pursue design activities in India or combine design with local manufacturing.
“We will support both,” he said.
Fabs and advanced packaging form next pillars
The third pillar is focused on bringing more fabrication facilities to India across areas such as display, memory, silicon and compound semiconductors.
“The interest is growing everyday,” Vaishnaw said, pointing to rising interest from semiconductor companies.
The fourth pillar will focus on advanced packaging. Semiconductor companies are increasingly using packaging technologies to improve chip performance and efficiency, making the segment an important part of the wider manufacturing ecosystem.
The fifth pillar covers applied research and development. Under this pillar, the industry has been invited to propose projects that can be jointly funded by companies and the government and carried out with academic institutions.
Talent development is the sixth pillar
The sixth pillar is aimed at building the skilled workforce required by India’s semiconductor industry. Vaishnaw said around 400 universities and institutes were already training students in chip design under Semicon 1.0.
“It’s probably the largest semiconductor talent development program in the entire world,” he said.
The government plans to extend the training focus from chip design to systems design. It also aims to train more than 100,000 technicians over five years.
The effort will involve industry and institutions such as Taiwan’s Industrial Technology Research Institute, including the creation of training facilities to meet the requirements of upcoming semiconductor factories.
Rs 1.27 lakh crore programme targets wider semiconductor ecosystem
The Union Cabinet approved Semicon 2.0 in July with an outlay of Rs 1,27,500 crore. The programme is intended to expand India’s presence across the semiconductor value chain rather than focus on a single stage of chip production.
Vaishnaw said the programme could generate close to one lakh jobs across the semiconductor ecosystem, with the eventual number potentially higher as investments and projects expand.
The second phase builds on the first Semicon India programme, under which 12 semiconductor projects have been approved. Three of these have already entered commercial production.
The latest investment pipeline suggests that Semicon 2.0 is intended to expand India’s semiconductor base across design, manufacturing, equipment, materials, packaging, research and skilled manpower.