Semicon 2.0: India Targets End-to-End Chip Capability with Fresh Investments

India is expanding its semiconductor programme with a focus on building an end-to-end ecosystem covering chip design, fabrication, packaging, equipment, materials and talent, Information Technology Minister Ashwini Vaishnaw said.

Vaishnaw said India must remain vigilant against potential cyberattacks, geopolitical risks and other disruptions as the country develops capabilities to design and manufacture semiconductors.

“We have to continuously be watchful of the potential geopolitical risks which will arise because India is now emerging as a country which can design and manufacture chips,” he said.

The minister said he had held discussions with the semiconductor industry and deeptech startups, asking them to be prepared for cyberattacks and other threats that could disrupt the sector.

His comments come as India steps up efforts to develop a domestic semiconductor ecosystem through the Rs 1,27,500-crore Semicon 2.0 programme. The policy provides support for chip fabrication, packaging and testing, design, equipment, materials and talent development.

According to the government, around USD 11-12 billion of semiconductor investment interest has emerged under Semicon 2.0, with projects expected to materialise over the next two to three years.

The investment interest was reflected at SEMICON India, where several major companies announced plans linked to India’s semiconductor ecosystem.

Applied Materials announced a USD 5 billion India plan through 2035, while Lam Research proposed an investment of Rs 10,000 crore. Tata Electronics announced a 363-acre vendor park at Dholera, Gujarat, and Fujifilm announced an Rs 800-crore semiconductor materials plant.

Tata Electronics is also developing a semiconductor fabrication facility at Dholera as part of the country’s efforts to expand domestic chip manufacturing and strengthen supply chains.