Semicon 2.0 Notified: ₹1.27 Lakh Crore Scheme Expands India’s Semiconductor Ambitions
The Central government has formally notified Semicon 2.0, a ₹1,27,500-crore programme aimed at building a broader semiconductor ecosystem in India. The initiative goes beyond chip fabrication to support chip design and intellectual property, advanced packaging, equipment, materials, research and development, and talent development. The scheme follows the Union Cabinet’s approval of the India Semiconductor Mission 2.0 outlay on July 15, 2026.
Unlike the first phase, Semicon 2.0 expands eligibility to startups, MSMEs, semiconductor fabs, packaging companies, equipment and materials manufacturers, research organisations and training institutions. Silicon wafer fabs can receive 40% of eligible capital expenditure, while compound semiconductor, photonics, sensor/MEMS and display fabs can receive 35%. Advanced packaging projects are eligible for 35% support, while conventional packaging can receive 25%.
The programme also introduces stronger support for semiconductor startups and R&D. Eligible chip-design startups and MSMEs can access national EDA tools, multi-project wafer services and seed funding of up to ₹15 crore. Advanced semiconductor R&D and talent-development projects can receive up to 75% of project costs. The government said the expanded framework is designed to strengthen self-reliance, encourage domestic innovation and position India as a globally competitive semiconductor hub.
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