Government Notifies Rs 1.27 Lakh Crore Semicon 2.0 Scheme to Strengthen Chip Ecosystem

The government has officially notified the Semicon 2.0 scheme with a total outlay of Rs 1.27 lakh crore, aimed at strengthening the chip manufacturing and design ecosystem in the country. The initiative provides sustained policy support and fiscal backing across the complete semiconductor value chain.

According to the official notification, the scheme is divided into six distinct segments. These cover the designing of chips by Indian firms, the establishment of units for capital equipment required in chip production, semiconductor fabrication facilities, as well as chip assembly, packaging, and testing.

The policy is designed to build resilient, trusted, and sovereign semiconductor technologies. It places specific focus on the design, development, and deployment of targeted segment technologies intended for national strategic applications and critical infrastructure.

Furthermore, the scheme targets the local development of semiconductor Intellectual Property (IP) cores, chips, System-on-Chips (SoCs), and modules for electronic products. These focus areas will be identified from time to time based on national importance and strategic priorities.

To support these objectives, necessary building blocks will be developed under the scheme. This includes standard IPs for various technology types, including compute, memory, radio frequency (RF), power, networking, and sensors.

"The formal notification of the Semicon 2.0 scheme with a substantial outlay of Rs 1.27 lakh crore marks a structured step toward building a domestic semiconductor ecosystem in India. By covering the entire value chain—from design and fabrication to assembly, packaging, and capital equipment—this policy provides the necessary fiscal backing for long-term capability building. For entrepreneurs and businesses operating in deep tech, hardware, and electronics, this creates a strong foundation to develop indigenous technologies and strengthen critical infrastructure." — Dr. Shishir Gupta, Founder & CEO, StartupLanes