India has secured investment commitments totaling ₹1 lakh crore (around $11-12 billion) under its Semicon 2.0 program, according to IT Minister Ashwini Vaishnaw. These substantial pledges, expected to materialize over the next two to three years, are projected to generate at least 1 lakh new jobs within the nation's burgeoning semiconductor industry.
The commitments span a wide array of the semiconductor ecosystem, encompassing equipment, materials, gases, chemicals, assembly, testing, marking and packaging (ATMP), substrates, and wafers. Minister Vaishnaw, speaking at SEMICON India 2026, highlighted this as a major achievement, though he refrained from disclosing specific investor names, citing companies' preferences to announce plans post-board and shareholder approvals.
Building a Comprehensive Semiconductor Ecosystem
The government's semiconductor strategy is unfolding in phases. Semicon 1.0 laid the groundwork by focusing on foundational elements for India's chip industry. Semicon 2.0, however, is designed to build a full-fledged ecosystem. This includes fostering chip design capabilities, securing equipment and materials, establishing fabrication units (fabs), advancing packaging technologies, and bolstering research, development, and talent acquisition.
A key aspect of the second phase is supporting semiconductor design companies, from startups to established players, through investments, tooling, IT infrastructure, and customer discovery initiatives. Vaishnaw also lauded the success of Semicon 1.0, which saw 20 deep-tech semiconductor startups secure venture capital funding.
Expanding Talent and Addressing Challenges
Beyond manufacturing, India is actively working to cultivate a skilled workforce. Under Semicon 1.0, approximately 400 universities and institutes began offering chip design courses. Semicon 2.0 aims to expand this educational focus to include systems design. Furthermore, the government plans to train technicians for upcoming semiconductor factories through partnerships with industry and international institutions like Taiwan's ITRI.
While progress is significant, Vaishnaw acknowledged global macroeconomic risks and the highly concentrated nature of current semiconductor supply chains as persistent challenges. He also emphasized that companies would ultimately base their manufacturing unit locations on factors such as policy certainty, government support, and the strength of local ecosystems.