NG TV NEWS | BUSINESS & TECHNOLOGY SPECIAL
SEMICON 2.0 GETS ₹1.27 LAKH CRORE PUSH: INDIA STEPS UP CHIP AMBITION
KOLKATA | SEPTEMBER 1, 2026
India has given a major push to its semiconductor ambitions with the notification of Semicon 2.0, a programme carrying an outlay of ₹1,27,500 crore. The initiative aims to move the country beyond chip assembly and develop a broader domestic ecosystem covering design, manufacturing, equipment, materials, research and skilled manpower.
The programme is built around six key pillars. These include semiconductor design; manufacturing and research related to equipment, chemicals and gases; additional fabrication facilities; ATMP/OSAT packaging and testing; advanced research and development; and talent development. The government says the approach is intended to strengthen supply-chain resilience and reduce strategic dependence on overseas semiconductor supplies.
A major focus will be the development of India’s chip-design capabilities. The government has said that 105 startups and small enterprises have already gained access to industry-standard chip-design tools. Semicon 2.0 seeks to take this ecosystem further by supporting intellectual property, chip designs and system-level products for strategic as well as commercial applications.
Manufacturing is another central component. The programme aims to attract more fabrication facilities, including silicon, compound-semiconductor and display fabs, while strengthening advanced packaging and testing capabilities. Government support will also extend to the machinery, materials, chemicals and gases required for semiconductor production.
The talent question is equally important. India has already trained about 85,000 semiconductor engineers, according to the government, and has set a fresh target of developing another one lakh engineers. The programme also intends to deepen specialised training in chip design, fabrication and related manufacturing activities.
The scale of the initiative could have wider economic consequences. Industry estimates suggest Semicon 2.0 could catalyse more than ₹5 lakh crore in private and industry investment over the next five to seven years, although such projections will depend on project execution and investor participation.
The challenge now lies in converting policy support into sustained manufacturing, technological capability and skilled employment. For India, Semicon 2.0 represents not merely a financial commitment but an attempt to establish a stronger position in one of the world’s most strategically important technology sectors.
NG TV NEWS | BUSINESS & TECHNOLOGY DESK
From chip design to manufacturing, India’s semiconductor ambition enters its next phase.
