New Funding Boost Expected for Chip Design and Fab Ecosystem

New Delhi, September 17 — The central government’s second‑stage semiconductor programme, Semicon 2.0, has secured investment proposals in the $11‑$12 billion bracket, covering equipment, materials, gases, chemicals and substrates required for modern chip making. The minister highlighted that these commitments are likely to translate into on‑ground projects within two to three years.

Site selection will be driven by the companies, who will choose locations offering policy certainty, strong governmental cooperation and a vibrant industrial ecosystem. The programme’s total allocation of ¡27.1 lakh crore is earmarked for advancing chip design, fab and packaging facilities, research and development, and talent incubation.

At the Semicon India 2026 summit, Tata Electronics signed an agreement with Ascendas FirstSpace to create a 363‑acre vendor park around its planned Dholera fab. Additional collaborations with Fujifilm and JSR Corporation will help domesticate essential semiconductor chemicals and photoresists for the project.

Independent estimates indicate that Semicon 2.0 could draw up to ¡4 lakh crore in total foreign and domestic capital and enable semiconductor output valued at around ¡2 lakh crore. The scheme also promises capital subsidies of up to 40% for fab projects and up to 75% support for R&D and skill‑development initiatives, further strengthening India’s semiconductor ecosystem.