Cabinet Approves Semicon 2.0 with ₹1.27 Lakh Crore Outlay to Power India’s Semiconductor Future

In a landmark decision to strengthen India’s semiconductor ambitions, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Semicon India Programme 2.0 (Semicon 2.0) with a substantial outlay of ₹1,27,500 crore. The next phase of the programme aims to accelerate the growth of India’s semiconductor design, manufacturing, packaging, and innovation ecosystem, reinforcing the country’s vision of becoming a global semiconductor hub.

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Building on the progress made under Semicon India 1.0, the new programme adopts a comprehensive strategy to create a robust and resilient semiconductor value chain. The initiative will support every critical segment of the ecosystem—from chip design and fabrication to advanced packaging, equipment, materials, research, and talent development. It also seeks to deepen industry-academia collaboration while encouraging indigenous technology development and attracting global semiconductor investments.

Semicon 2.0 comes at a time when semiconductors have become the backbone of emerging technologies, including artificial intelligence (AI), electric vehicles (EVs), 5G and 6G communications, data centres, industrial automation, consumer electronics, aerospace, and defence systems. By strengthening domestic capabilities, the government aims to reduce import dependence, enhance supply chain resilience, and position India as a trusted global partner in semiconductor manufacturing.

The announcement marks one of India’s most significant long-term commitments to the semiconductor sector. Industry stakeholders believe the expanded programme will accelerate the establishment of new fabrication facilities, semiconductor design centres, advanced packaging units, and research infrastructure while creating high-value employment opportunities.

With Semicon 2.0, India is moving beyond being one of the world’s largest semiconductor consumers towards becoming a key global destination for semiconductor innovation, manufacturing, and next-generation electronics, laying a strong foundation for sustained technological and economic growth.