India’s proposed Semicon 2.0 programme could exceed the original $10 billion allocation as the country accelerates its semiconductor manufacturing plans.
India is preparing to expand its semiconductor ambitions with the proposed second phase of its chip incentive programme, widely referred to as Semicon 2.0. Industry experts believe the new phase could exceed the government’s original $10 billion allocation as the country pushes to establish itself as a major player in the global semiconductor industry. Rising manufacturing costs, increasing demand for advanced chips, and intensifying global competition are expected to drive the need for larger financial support.
The first phase of the India Semiconductor Mission, launched with an outlay of ₹760 billion, focused primarily on attracting semiconductor fabrication plants, chip packaging units, and display manufacturing facilities. Several projects have already been approved under the scheme, with companies such as Micron Technology, Tata Electronics, and Kaynes Technology receiving support for semiconductor-related investments in India.
Under Semicon 2.0, the government is expected to broaden the scope of incentives beyond manufacturing plants and assembly units. The next phase could include support for semiconductor equipment suppliers, specialty chemical and gas providers, chip testing companies, and design-focused firms. Industry leaders say this wider approach is necessary to develop a complete semiconductor ecosystem within the country rather than relying heavily on imports and overseas suppliers.
India’s semiconductor expansion plans come at a time when countries around the world are investing aggressively in chip manufacturing to secure supply chains and strengthen their technology sectors. Semiconductors are increasingly seen as critical for industries such as artificial intelligence, electric vehicles, telecommunications, defence, consumer electronics, and data centers.
Experts believe the upcoming incentive programme could significantly strengthen India’s long-term position in global electronics manufacturing. By encouraging both international and domestic investments, the government aims to transform India into a competitive semiconductor production and innovation hub over the coming decade.
