India has launched Semicon 2.0, an ambitious initiative with a substantial outlay of ₹1.27 lakh crore, targeting the development of at least 200 chip design startups and companies. Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, unveiled the plan at the inaugural session of SEMICON India 2026 in New Delhi on Thursday, September 17, 2026.
This new phase significantly expands upon Semicon 1.0, which saw over 105 startups attempt chip design, with approximately 20 securing venture capital funding totaling around ₹800 crore. Minister Vaishnaw emphasized the increased scope, stating, “That was just the beginning. This time our ambition is much bigger. We would be targeting at least 200 startups and companies which design chips in India across the spectrum of semiconductor requirements.”
Six Pillars for a Robust Ecosystem
Semicon 2.0 is structured around six core pillars designed to build a comprehensive semiconductor ecosystem. These include:
- Design: The primary focus, aiming to cultivate a strong domestic chip design industry.
- Machines and Materials: Developing the necessary infrastructure for capital equipment, maintenance facilities, chemicals, and gases.
- Fabrication Units: Establishing more display, memory, silicon, compound, and logic fabrication facilities across India.
- Advanced Packaging: Scaling up advanced packaging capabilities, building on existing projects like a 3D packaging facility in Odisha.
- Research and Development (R&D): Promoting industry-driven, applied R&D projects through collaborations with academia.
- Talent: Expanding the skilled workforce for the semiconductor sector.
Fostering a Skilled Workforce
Under Semicon 1.0, India successfully trained 70,000 design engineers within four years, nearing its initial 10-year target of 85,000. Now, Semicon 2.0 aims to develop an additional 1 lakh skilled technicians, cleanroom personnel, and factory floor talent. This initiative seeks to create a global pool of professionals for direct employment in upcoming semiconductor factories.
Furthermore, over 400 universities nationwide now have access to advanced Electronic Design Automation (EDA) tools from leading providers like Cadence, Siemens, and Synopsys. The Semiconductor Laboratory in Mohali is actively utilized for taping out student-designed chips, fostering practical experience.
Long-Term Vision for India's Semiconductor Future
Recalling Prime Minister Narendra Modi's guidance from five years prior, Vaishnaw highlighted the long-term strategic thinking behind the mission: “Don't think short term, think long term. Don't think fab, think ecosystem.” This philosophy continues to guide India's semiconductor strategy, aiming for holistic development rather than isolated manufacturing units.
The Government of India initially approved Semicon 1.0 in December 2021 with an outlay of ₹76,000 crore, leading to the approval of twelve semiconductor manufacturing units with a cumulative investment exceeding ₹1.64 lakh crore. Semicon 2.0, approved in July 2026, builds on this foundation, paving the way for India's goal of becoming a developed nation, or Viksit Bharat, by 2047. The SEMICON India 2026 conference, themed 'Silicon to Systems: Building the Ecosystem', was inaugurated by Prime Minister Modi himself, underscoring the national importance of this mission.