India's semiconductor ambitions bolstered by Semicon 2.0 policy continuity

India's semiconductor sector is well-positioned for growth, supported by sustained government commitment to the industry's development roadmap, according to Randhir Thakur, CEO and Managing Director of Tata Electronics.

Thakur highlighted the importance of policy continuity following the introduction of Semicon 2.0, which succeeded the initial Semiconductor 1.0 scheme. "In our business, it is about continuity, and semiconductor is a roadmap-based journey," he said, emphasizing that the fresh policy framework provides the predictability necessary for long-term investment decisions in this capital-intensive sector.

Tata Electronics is executing a major expansion to establish India's semiconductor manufacturing base, constructing the country's first commercial semiconductor fabrication plant in Dholera, Gujarat, and its first indigenous semiconductor assembly and testing facility in Jagiroad, Assam. The dual projects represent a combined investment of USD 14 billion and are designed to serve global customers across critical industries.

Thakur indicated that as Tata Electronics generates cash flow from its operations, the company will reinvest into capacity expansion and technology development. The trajectory reflects broader industry confidence that Semicon 2.0 will provide the stable environment required to build internationally competitive semiconductor capabilities domestically.