On July 15, 2026, India’s central government approved a new scheme called “Semicon 2.0” to strengthen its semiconductor ecosystem, with a budget of ₹1.275 trillion (roughly $13.23 billion). The scheme spans six pillars, from chip design to workforce development. While the earlier “Semicon 1.0” (India Semiconductor Mission), launched in 2022, has focused on building front-end and packaging facilities, India is now working to broaden its involvement across the entire semiconductor value chain.
What This Article Covers
- The budget and six pillars of Semicon 2.0
- Progress under the preceding Semicon 1.0 program (approved facilities, participating companies)
- The areas Semicon 2.0 is designed to target
- What remains unconfirmed (application and review timelines, project selection criteria)
Overview
India’s government, led by the Ministry of Electronics and Information Technology (MeitY), announced on July 15, 2026 that its Cabinet had approved the new “Semicon 2.0” scheme, according to an official press release from India’s Press Information Bureau (PIB). The scheme, with a budget of ₹1.275 trillion (about $13.23 billion), covers six areas: chip design, supply chain, manufacturing, packaging, R&D, and talent development. Building on the India Semiconductor Mission (“Semicon 1.0”), launched in 2022, the policy aims to build a more integrated value chain that extends beyond front-end manufacturing to include design, packaging, and materials.
Details
Key points confirmed via India’s official PIB announcement and multiple independent reports:
- Semicon 2.0 budget: ₹1.275 trillion (approximately $13.23 billion)
- Six target areas: chip design, supply chain, manufacturing, packaging, R&D, and talent development
- Progress under Semicon 1.0: 12 manufacturing units approved (one silicon fab, one SiC fab, one integrated GaN Micro LED display fab, and nine packaging units), with cumulative investment exceeding ₹1.64 lakh crore (about $17.02 billion)
- Companies that have already begun commercial production under Semicon 1.0: Micron, Kaynes, and CG Semi
- Corporate investments announced in connection with Semicon 1.0: Applied Materials ($400 million), AMD ($400 million), Microchip Technology ($300 million), Lam Research ($1.1 billion), and KLA ($400 million)
Industry Impact
What stands out about Semicon 2.0 is that it goes beyond attracting front-end fabs to cover chip design, packaging, specialty materials, R&D, and workforce development. This suggests India is shifting toward a strategy of building a presence across the entire value chain, at a time when countries around the world are competing intensely to attract front-end fab investment from the likes of TSMC, Intel, and Samsung. With major semiconductor equipment makers such as Applied Materials, Lam Research, and KLA already committing investment under the Semicon 1.0 framework, additional investment from equipment and materials suppliers is likely to be a key focus under Semicon 2.0 as well.
Relevance to Japan
Based on the sources confirmed so far, there is no specific indication of Japanese company involvement in Semicon 2.0. That said, global suppliers of semiconductor manufacturing equipment and specialty materials have already committed investment under the Semicon 1.0 framework, suggesting Japanese equipment and materials makers could find growing opportunities to enter the Indian market as well. It is worth continuing to watch for investment announcements or partnerships involving Japanese companies.
What to Watch Next
- The specific application and review timeline for Semicon 2.0
- Selection criteria for individual projects
- Additional companies announcing investment (including equipment and materials suppliers)
- The operational and mass-production status of the 12 facilities approved under Semicon 1.0
We will update this article as these points become clear.
Summary
India’s government has approved the “Semicon 2.0” scheme, committing ₹1.275 trillion across six areas spanning chip design, packaging, and workforce development. Under the preceding Semicon 1.0 program, 12 manufacturing facilities have already been approved, with major companies including Applied Materials, AMD, Lam Research, and KLA committing investment. The application timeline and project selection criteria for Semicon 2.0 remain to be announced, and we will continue to track official updates.
