Semiconductor Foundation Laid in India, Next Phase Is Growth

India has laid the foundation for its semiconductor industry and the focus now is on expanding capabilities across chip design, manufacturing, packaging, research and talent development, Union Minister for Electronics and IT Ashwini Vaishnaw said on Thursday.

Speaking to IANS on the sidelines of SEMICON India 2026 in New Delhi, Vaishnaw said the government is looking to develop key parts of the semiconductor ecosystem within the country, including materials, machinery, new fabrication units, ATMP units, chip design and talent.

The minister said Semicon 2.0 will focus on six areas: design; machines and materials; setting up more fabs; strengthening the ATMP/OSAT industry; research and development; and talent development.

Semicon 2.0 expands focus across semiconductor value chain

Vaishnaw said the first phase of the programme saw more than 105 startups participate in efforts focused on chip design, with around 20 receiving venture capital funding of about Rs 800 crore.

He described this as an initial step towards developing India's semiconductor ecosystem.

The government has now notified all six pillars of the Semicon 2.0 Scheme, which provides fiscal and infrastructure support across the semiconductor value chain, covering chip design, fabrication and packaging as well as equipment, materials, research and development and talent development.

Projects supported under Semicon 2.0 will generally have a duration of up to six years, while the scheme will initially accept applications for three years.

The India Semiconductor Mission (ISM) will serve as the nodal agency. It will invite applications, conduct technical and financial appraisals, recommend applicants and oversee implementation.

SEMICON India 2026 draws participation from 52 countries

IT Secretary S. Krishnan said the scale of SEMICON India 2026 has increased compared with last year.

According to Krishnan, nearly 40,000 delegates have registered for the event, while more than 600 companies are participating in the exhibition. Delegates from around 52 countries are attending, with more than 300 overseas companies taking part in the exhibition.

Krishnan said the participation reflects international confidence in India as a destination for semiconductor manufacturing.

A mid-term assessment of Semicon 2.0 will be conducted after three years of implementation, or as required, to evaluate the scheme's impact and consider possible modifications or continuation.

The scheme builds on the first Semicon India Programme and aims to strengthen India's capabilities across semiconductor design and manufacturing.