Semicon 2.0 programme allocates ₹1.27 lakh crore for IP and design

New Delhi, 14 August – The Indian Union Cabinet approved the Semicon 2.0 programme in July 2026, earmarking a massive ₹1.27 lakh crore to nurture semiconductor intellectual property, chip design and system‑level design activities. The scheme is part of a broader strategy to make India a global semiconductor design hub.

The programme will fund research into next‑generation IP blocks, support start‑ups working on cutting‑edge chip architectures, and promote collaborations between academia and industry. By encouraging home‑grown design talent, the government aims to reduce reliance on foreign design services and increase export potential.

Semiconductors underpin modern digital ecosystems – they power smartphones, electric vehicles, satellite communications, defence hardware and the exploding field of artificial intelligence. As AI applications demand ever‑higher compute performance, the need for specialized processors and advanced packaging grows in tandem, reinforcing the symbiotic relationship between the two sectors.

The fact sheet also notes that India has already achieved significant milestones in chip manufacturing, with seven domestically produced chips, including a 12‑nanometre node, and three commercial‑scale fabs operating.

Complementary to the hardware push, the government is scaling AI infrastructure through the India‑AI mission. With a budget of about ₹10 372 crore, the mission has expanded shared GPU capacity to more than 45 000 units, enabling 237 projects to consume 9.318 million GPU hours by August 2026. This dual focus on chips and AI is designed to accelerate innovation, lower entry barriers and position India as a technology‑self‑reliant nation.