India’s semiconductor manufacturing programme is moving into a new phase, with 12 approved units drawing about $20 billion in investment and three of them already producing chips.Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Saturday that the progress reflected a shift from policy formulation to real industrial execution. The approval of Semicon 2.0 is now expected to drive the next stage of expansion.

Vaishnaw said the government had learned from earlier attempts to build a chipmaking ecosystem and chose a more focused approach when it launched Semicon India in 2022. He added that India now has “12 semiconductor units with $20 billion investment” and that “3 units are already making chips” — a major milestone for a country that has long depended on imported semiconductor components for critical industries.

“2022: We started Semicon India. Learnt from past attempts. Clear policy and execution. In 2026: 12 semiconductor units with $20 billion investment. 3 units already making chips. Semicon 2.0 approved. And we are just getting started,” he wrote in response to a post about earlier failed efforts to make India a semiconductor manufacturing hub.

Rs 1.27 lakh crore Semicon 2.0 to drive India’s next semiconductor manufacturing boom

India has taken several steps in recent years to emerge as a major semiconductor manufacturing and technology hub — reducing vulnerabilities associated with dependence on overseas supply chains. The minister said the approval of Semicon 2.0 signals the Centre’s intent to deepen the domestic semiconductor ecosystem and expand manufacturing capacity. 

According to official programme details, Semicon 2.0 carries a fiscal outlay of Rs 1.27 lakh crore and is designed to build on the first phase by supporting chip design, advanced packaging, semiconductor equipment, specialty materials, research and talent development. The next phase is also expected to encourage more Assembly, Test, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) capacity, with India increasingly being seen as an alternative global hub for chip packaging.

From chip consumer to global producer: India scales up semiconductor manufacturing

Semiconductors are now central to a wide range of sectors, including automobiles, smartphones, consumer electronics, telecom equipment, defence systems and emerging technologies such as artificial intelligence. For India, the push is not only about industrial growth but also about reducing vulnerability to overseas supply-chain disruptions and building a more resilient technology base.

Vaishnaw’s remarks come at a time when the government is trying to convert policy momentum into a broader manufacturing ecosystem that can support both domestic demand and export ambitions. The first phase of the programme has already taken India from project approvals to operational plants, and the Centre now appears focused on scaling that foundation into a globally competitive chip industry.

Officials have said the larger goal under Semicon 2.0 is to strengthen India’s position across the semiconductor value chain, including fabrication, packaging and design. If the current pipeline is executed on schedule, the country could move from being a major consumer of chips to a more significant producer, with more units expected to begin commercial output in the coming quarters.

ALSO READ

100 fabless chip firms target under Semicon 2.0 is achievable: Govt

Semicon 2.0 is India’s upgraded semiconductor mission, a long-term government programme to build a stronger chip ecosystem across design, fabrication, packaging, materials and talent. Its goal is to reduce import dependence, boost domestic chip manufacturing, create design-led semiconductor firms and make India a globally competitive hub for semiconductors and advanced electronics.

The government’s target of nurturing 100 fabless semiconductor companies under Semicon 2.0 is “doable,” though approvals will continue to depend on the quality and credibility of proposals, Amitesh Kumar Sinha, Additional Secretary in the Ministry of Electronics and Information Technology and CEO of the India Semiconductor Mission, said on July 31. He said the programme is designed to back serious chip-design ventures rather than meet a numeric target for its own sake.

“Actually, this 100 number is doable. Right now, we have given approval to 24. But let us not put a number to any kind of scheme. Because it depends upon the credibility of the proposal,” Sinha told ANI on the sidelines of the India Fabless Semiconductor Design Acceleration Workshop.

He said the same approval discipline used under Semicon 1.0 will continue, with the policy acting as an enabler for companies that can build intellectual property, design chips and reach tape-out milestones.

ALSO READ

Focus on design and intellectual property

According to Sinha, the India Semiconductor Mission is supporting startups through financial assistance, EDA tools, infrastructure access, IP support and facilitation for chip tape-outs. The broader aim, he said, is to strengthen India’s design ecosystem and help create globally competitive fabless companies.

India Cellular and Electronics Association Chairman Pankaj Mohindroo said Semicon 2.0 offers much more flexibility than the earlier framework, with no fixed funding cap. He said the previous limit of Rs 15 crore has been removed, allowing the government to extend support of Rs 50 crore or even up to Rs 1,000 crore, depending on the project. Mohindroo said the final guidelines are still being settled, but the new structure should create an enabling environment for end-to-end support.

He also said semiconductor design is one of India’s biggest opportunities because the country already has strong engineering talent. Comparing fabless design firms to Nvidia, Mohindroo said this is a “lower hanging fruit” for India and added that the long-term goal should be to build as many as 500 semiconductor design companies.

Mohindroo said the government has already equipped 320 institutions with EDA tools to strengthen the talent pipeline, and more institutions could be brought in later depending on need. The push, he said, is aimed at building deeper design capability across universities and training centres so India can move beyond assembly and become stronger in chip architecture and product design.