Archive · 31 Aug 2026
India Notifies ₹1.27 Lakh-Crore Semicon 2.0 Semiconductor Expansion Scheme
India has started a new programme called Semicon 2.0 to build more of the technology used to make computer chips.
The programme will spend ₹1,27,500 crore.
It will support many types of organisations, including startups, factories, research groups and training institutions.
The plan includes designing chips, making them, and assembling and testing them.
The government will pay part of the cost for some new factories and packaging facilities.
Startups and companies can receive different kinds of financial support for chip design.
A special expert panel will decide which chips are strategically important for incentives.
The government says the goal is to make India more self-reliant and develop a globally competitive semiconductor industry.
The Centre has formally notified Semicon 2.0 with an outlay of ₹1,27,500 crore.
The scheme covers chip design, fabrication, capital equipment, assembly, packaging, testing, materials, research and training.
Eligible applicants are grouped into six pillars or segments and 10 categories, according to the notification.
The programme offers fiscal support ranging from 25% to 40% for fabs and packaging facilities, with separate funding for chip-design companies and startups.
A proposed expert panel led jointly by the Principal Scientific Adviser and National Security Adviser will identify strategic chips eligible for incentives.
- Who
- The Government of India, through the Ministry of Electronics and Information Technology, is implementing Semicon 2.0; IT Secretary S Krishnan announced its objectives, and Ashwini Vaishnaw described the proposed expert panel.
- What
- The Centre notified Semicon 2.0, a ₹1,27,500-crore programme to expand India’s semiconductor ecosystem.
- When
- The scheme was notified on Monday, August 31; the Union Cabinet had approved it on July 15, 2026.
- Where
- The programme will support semiconductor activity in India.
- Why
- The government says it aims to promote self-reliance and a globally competitive industry amid rising chip demand, supply-chain concerns and geopolitical changes.
- Scheme
- Semicon 2.0
- Total outlay
- ₹1,27,500 crore
- Coverage
- Six pillars or segments and 10 categories
- Fab support
- 40% fiscal support for silicon fabs and 35% for compound, display and other specialised fabs
- Packaging support
- 35% of capital expenditure for advanced packaging and 25% for conventional packaging
- Design support
- Startups may receive grants and equity co-investment; companies may receive royalty financing or equity co-investment
- Strategic-chip panel
- A high-level panel, jointly chaired by the Principal Scientific Adviser and National Security Adviser, will identify chips eligible for incentives
