Transitioning from Policy Planning to Commercial Chip Production
Inaugurating the fifth edition of SEMICON India at the Yashobhoomi Convention Centre in New Delhi, Prime Minister Narendra Modi declared that India's semiconductor journey has officially transitioned "from files to factories and policy to commercial production." Convened under the theme "Silicon to Systems: Building the Ecosystem," the three-day global summit brought together over 600 exhibitors—including 300 international firms—and industry delegations from 52 countries, reflecting growing international confidence in India's emerging microelectronics footprint.
Overview: Key Highlights of the 'Semicon 2.0' Strategic Framework
| Strategic Parameter / Metric | Official Policy Provisions & Outlay |
| Expanded Programme Outlay | ₹1,27,500 Crore ($13.5 Billion) (Up from $8 Billion in 1.0) |
| Capital Expenditure Support | 40% Pari-Passu Fiscal Support for eligible ecosystem units |
| Approved Projects Baseline | 12 Major Projects across 6 states (₹1.6 Lakh Crore total investments) |
| Core Operational Pillars | 6 Pillars: Fabs, Packaging, Design, Equipment/Materials, R&D, Talent |
| Workforce Development Target | 1,00,000 Technicians & Cleanroom Engineers via ChipIN centers |
| Commercial Milestones | Commercial launch of India's first QFN chip & commercial fab outputs |
Unveiling the Six Pillars of 'Semicon 2.0'
Addressing global corporate executives, researchers, and policymakers, Prime Minister Modi detailed the broader scope of the newly notified Semicon 2.0 initiative. Building upon the foundational achievements of Semicon 1.0—which approved 12 major projects, including commercial facilities by Micron, Kaynes, and CG Semi—the second phase expands capital incentives beyond silicon fabs to encompass the entire upstream and downstream supply chain.
The $13.5 billion framework focuses on six key pillars: silicon and specialized fabs, advanced 3D packaging (ATMP/OSAT), domestic fabless chip design, equipment and component manufacturing, critical raw materials (gases and chemicals), and industry-led R&D. Under the guidelines, eligible capital expenditure projects across these ten designated categories will receive up to 40% fiscal support on a pari-passu basis.
Reforms for Fabless Startups, AI Infrastructure, and Talent Creation
To accelerate domestic intellectual property (IP) creation, Union Minister for Electronics and IT Ashwini Vaishnaw confirmed that Semicon 2.0 will support at least 200 domestic chip design startups while expanding the ChipIN infrastructure network across regional centers. New regulatory reforms now enable seamless joint ventures between international technology firms, Indian startups, and Overseas Citizen of India (OCI)-owned design entities.
Highlighting the AI revolution's impact on hardware demands, PM Modi called for focused domestic developments in silicon photonics, compound semiconductors, and thermal management technologies. The government also pledged to train over 100,000 specialized cleanroom technicians and floor workers through university partnerships and dedicated workforce pavilions to sustain the country's manufacturing momentum.