The government on Monday notified the Semicon 2.0 scheme, setting in motion the Rs 1,27,500-crore plan that seeks to deepen India's semiconductor ambitions--from chip manufacturing to a full-stack ecosystem encompassing indigenous design and IP, equipment, materials, advanced packaging, R&D and talent development.
The move comes at a time when semiconductors have emerged as a critical strategic resource globally, with the AI boom driving unprecedented demand for advanced chips and memory.
At the same time, growing concerns over supply-chain vulnerabilities and shifting geopolitics have pushed global players to expand semiconductor capacities and reduce dependence on concentrated production hubs.
The Semicon 2.0 scheme was approved by the Union Cabinet on July 15, 2026.
The notification on Monday spells out the contours of the new programme detailing how the Rs 1,27,500-crore outlay will be implemented, and how incentives will be structured, and the eligibility criteria for various categories.
