Cabinet Approves Semicon 2.0: Rs 1,27,500 Crore Allocated for Semiconductor Ecosystem Development
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Semicon 2.0 for the development of India's semiconductor design and manufacturing ecosystem. The scheme carries a total budget outlay of Rs 1,27,500 crore.
The initiative recognises the need for sustained long-term support to the semiconductor sector and builds on momentum from Semicon 1.0. It aims to advance the government's efforts to position India in the global semiconductor industry through a six-pillar approach.
The first pillar focuses on design. It builds on the initial success with 105 startups already developing chips. The scheme identifies building blocks for strategic and commercial products and targets the development of intellectual properties (IPs), chip designs, and systems. The goal is to establish India as a key semiconductor chip design IP country.
The second pillar covers machines and materials. Companies engaged in manufacturing and R&D of machines, as well as production of materials, chemicals, and gases essential for semiconductor manufacturing, will receive incentives. This is intended to support sustainable industry growth and develop precision manufacturing capabilities.
The third pillar addresses setting up more fabs. With the first fab scheduled for commissioning in...