1. Introduction

The programme builds on the progress made under the India Semiconductor Mission launched in 2021 and reflects the government’s long-term strategy to position India as a significant player in the global semiconductor industry.

Semiconductors are the foundation of modern technologies, powering smartphones, automobiles, consumer electronics, defence equipment, artificial intelligence, telecommunications and data centres. As global demand for chips continues to rise and countries seek resilient supply chains, India aims to strengthen its domestic capabilities and reduce dependence on imports. Semicon Mission 2.0 seeks to create a complete semiconductor ecosystem that supports innovation, manufacturing, research and skilled workforce development.

2. Origin and Intent

The first phase of the India Semiconductor Mission focused primarily on attracting investments for semiconductor fabrication plants (fabs) and Assembly, Testing, Marking and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) facilities. It laid the foundation for semiconductor manufacturing by offering fiscal incentives and encouraging global companies to establish operations in India.

Semicon Mission 2.0 marks the next stage of this strategy by expanding support across the entire semiconductor value chain. Instead of concentrating only on fabrication, the programme promotes chip design, semiconductor manufacturing equipment, raw materials, chemicals, advanced packaging, research, innovation and talent development. The objective is to create an integrated ecosystem where design, manufacturing, packaging and research can grow together.

The initiative also aligns with India’s broader vision of becoming a global electronics manufacturing hub under the Make in India and Atmanirbhar Bharat initiatives, while improving technological self-reliance in strategic sectors.

3. Key Amendments

Semicon Mission 2.0 complements the recently approved Mobile Phone Manufacturing Scheme (MPMS) by strengthening the upstream semiconductor ecosystem that supplies components for India’s growing electronics industry. The mission is built around six key pillars:

First Pillar – Design: The programme will expand support for semiconductor design startups and companies, building on the success of the Design Linked Incentive (DLI) Scheme. It aims to promote innovation in chip design and develop globally competitive intellectual property (IP).

Second Pillar – Machines and Materials: Incentives will be provided to companies manufacturing semiconductor production equipment as well as essential materials, specialty chemicals and industrial gases required for chip fabrication. This will help reduce import dependence and strengthen domestic supply chains.

Third Pillar – More Semiconductor Fabs: The government will continue attracting global semiconductor manufacturers to establish fabrication facilities in India. With the country’s first commercial semiconductor fab expected to become operational by 2028, the mission seeks to encourage additional investments in wafer manufacturing.

Fourth Pillar – Strengthening the ATMP/OSAT Industry: Building on recent investments in semiconductor packaging and testing facilities, the programme aims to expand India’s capabilities in ATMP and OSAT operations, making the country an attractive alternative manufacturing destination.

Fifth Pillar – Research and Development: The mission places greater emphasis on advanced semiconductor technologies beyond the current 28 nm to 110 nm manufacturing nodes. It encourages collaboration between Indian institutions, industry and leading international research centres to develop next-generation semiconductor technologies.

Sixth Pillar – Talent Development: India has already introduced semiconductor design programmes in 315 universities, enabling around 68,000 students to receive training using advanced Electronic Design Automation (EDA) tools. Semicon Mission 2.0 will further expand these initiatives by strengthening industry-oriented education, research and specialised skill development.

4. Impact

Semicon Mission 2.0 is expected to significantly strengthen India’s semiconductor ecosystem by encouraging investments, generating high-skilled employment and promoting technological innovation. A stronger domestic semiconductor industry will improve supply chain resilience, support strategic sectors such as defence, telecommunications, automotive and artificial intelligence, and reduce dependence on imported chips.

The programme aims to attract investments of around ₹4 lakh crore while supporting semiconductor production worth nearly ₹2 lakh crore during its implementation period. It is also expected to accelerate the growth of India’s electronics manufacturing sector by creating stronger linkages between semiconductor production and downstream industries such as smartphones, consumer electronics and electric vehicles.

By developing capabilities across design, fabrication, packaging, research and workforce development, the mission seeks to establish India as a trusted global partner in semiconductor manufacturing and innovation.

5. Conclusion

Semicon Mission 2.0 represents a major step in India’s ambition to build a globally competitive semiconductor ecosystem. By supporting every stage of the semiconductor value chain—from chip design and fabrication to research, advanced packaging and talent development—the programme moves beyond isolated manufacturing incentives towards creating a self-sustaining industry. If implemented effectively, it can enhance India’s technological competitiveness, strengthen economic resilience and position the country as an important hub in the global semiconductor supply chain.