Semicon 2.0: India Targets 200 Chip Design Companies In Major Semiconductor Push

India expects around 200 chip design companies to emerge under the ₹1.27 lakh crore Semicon 2.0 programme, Union Electronics and IT Minister Ashwini Vaishnaw said, describing the expansion as a potential “game changer” for the country’s semiconductor ambitions.

Speaking at SEMICON India 2026, Vaishnaw said India’s established strengths in IT, engineering and global capability centres were now extending into semiconductor design. The government expects this transition to create a much larger domestic chip-design ecosystem.

The target builds on the first phase of the India Semiconductor Mission. Under ISM 1.0, more than 105 chip design startups received access to advanced Electronic Design Automation tools, which are critical for designing and testing semiconductors. Another 20 startups received venture capital support.

Vaishnaw said the next phase would also focus on strengthening the wider semiconductor supply chain, including equipment, materials, manufacturing, packaging and applied research. He said the government wants more R&D to take place inside manufacturing plants to improve product quality and production processes.

India is also attracting growing interest from international semiconductor companies. Roundtables involving companies and government representatives from the US, Japan, Netherlands, Finland, Singapore and South Korea were held during the event to explore partnerships and expansion opportunities.

Japan and Singapore had more than 30 companies each participating in their pavilions, Vaishnaw said. The government has received industry inputs on issues including customs and logistics and plans to work on them.

The minister also said Indian companies and global partners have begun discussions and signed agreements relating to critical semiconductor equipment and minerals, with domestic production expected to begin under Semicon 2.0.

Environmental concerns are another focus. Vaishnaw said semiconductor companies would undertake substantial water recycling, while data centres are increasingly adopting closed-loop cooling systems to reduce water consumption.

The broader objective is to move India beyond electronics assembly towards a complete semiconductor ecosystem spanning chip design, manufacturing, equipment, materials, research and skilled talent.