Archive · 19 Jul 2026
Semicon 2.0 to Boost Indian Chip Design
The Indian government has launched a big program called Semicon 2.0 to help Indian companies make advanced computer chips.
This program has a lot of money, ₹1.27 lakh crore, and will last for six years starting from FY27.
The government wants to give money to companies that design chips, but they also want private investors to help.
This way, the government doesn't have to choose which companies get the money.
The chips they want to make are very small and advanced, used in things like artificial intelligence.
Right now, India is focusing on designing these chips, not making them.
The government has already found 105 startups that are working on chip design.
They hope this will make India an important place for making chip designs.
Semicon 2.0 has a budget of ₹1.27 lakh crore and will last for six years starting FY27.
The government will provide incentives to Indian chip companies in the form of grants, equity, or royalty-based payments.
The program aims to deepen the chip design ecosystem and develop advanced chips for technologies like artificial intelligence.
The government has identified 105 startups already developing chips and will co-invest with venture capitalists.
India's first chip manufacturing unit will start with a 28 nanometer technology node, while advanced chips are 7 nanometers and smaller.
- Who
- Indian chip-making firms and the Indian government
- What
- Semicon 2.0 initiative to boost investment in advanced chip design
- When
- Starting FY27 for 6 years
- Where
- India
- Why
- To develop advanced chips for technologies like artificial intelligence and to deepen the design ecosystem
- Budget
- ₹1.27 lakh crore
- Duration
- 6 years starting FY27
- Focus
- Advanced chip design
- Investment Cap
- No announced cap
- Startups Identified
- 105
- Initial Manufacturing Node
- 28 nanometer
- Advanced Chip Node
- 7 nanometer and smaller