Semicon 2.0 Aims to Position India as Global Chip Hub with New Fab and Design Support
New Delhi – The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Semicon 2.0 roadmap, committing an unprecedented 1,27,500 crore rupees to accelerate India's semiconductor manufacturing and design capabilities.
Under the new scheme, twelve fab projects have been sanctioned, together proposing more than 1.64 lakh crore rupees of capital investment. The portfolio includes a silicon wafer fab, a silicon carbide fab, an integrated gallium nitride micro‑LED display fab, and nine advanced packaging units. These facilities will address the chip demand of sectors ranging from consumer gadgets and industrial equipment to automotive, power electronics, telecom and aerospace.
Three of the approved manufacturers – Micron, Keonics (Kalyani Group) and CG Semiconductor – are already producing at commercial scale, while a fourth fab is slated to commence production in 2026. In tandem, the government has approved financial assistance for 24 semiconductor design ventures and has enabled 105 startups and MSMEs to access cutting‑edge electronic design automation (EDA) tools.
Semicon 2.0 is structured around six strategic pillars: (1) Chip design, with an emphasis on indigenous IP creation; (2) Supply of machines, raw materials, chemicals and specialty gases to nurture a full‑stack ecosystem; (3) Establishment of new fabrication units, aiming for the first operational fab by 2028; (4) Expansion of advanced packaging (ATMP and OSAT) capabilities, capitalising on India's growing reputation as an alternative manufacturing hub; (5) Research and development, moving beyond the current 28‑110 nanometre node range through collaborations with leading global institutes; and (6) Development of skilled manpower, with 315 universities equipped with modern EDA tools and roughly 68,000 students already trained in chip design.
The cabinet’s statement underscores the ambition to convert the momentum generated by Semicon 1.0 into a lasting global presence, making India a pivotal centre for semiconductor innovation, production and talent development.