India launches ₹1.27 trillion Semicon 2.0 scheme to strengthen chip sector

India's government has officially rolled out the Semicon 2.0 scheme, a comprehensive ₹1.27 lakh crore initiative designed to establish a resilient and self-reliant semiconductor ecosystem. The scheme represents sustained policy commitment to position India as a trusted hub for semiconductor technologies, addressing both design and manufacturing requirements across the sector.

The framework is structured across six distinct segments to support the complete semiconductor value chain. These include support for chip design by Indian firms, capital equipment manufacturing units essential for production, semiconductor fabrication facilities, and specialized services in chip assembly, packaging, and testing. This segmented approach ensures support for both established and emerging segments of the industry.

According to the government notification, Semicon 2.0 will provide targeted fiscal incentives across multiple verticals within the semiconductor ecosystem. The scheme emphasizes development of sovereign technological capabilities while building manufacturing resilience to reduce dependence on global supply chains. By addressing each stage of semiconductor production, from conceptualization to final testing, the initiative aims to create an integrated domestic industry capable of competing globally.

The notification underscores the government's focus on developing trusted semiconductor technologies through indigenous design, development, and deployment capabilities. Industry analysts view the scheme as a critical measure to accelerate India's transition from being primarily a consumer of semiconductor technology to becoming a significant producer and innovator in the sector.