Semicon 2.0 to Expand India’s Semiconductor Ambitions Beyond Manufacturing

India is preparing to take the next major step in its semiconductor journey with the rollout of Semicon 2.0, a strategic initiative designed to deepen the country’s presence across the entire semiconductor value chain. Building on the foundation established under the first phase of the India Semiconductor Mission (ISM), the new roadmap aims to move beyond fabrication plants and create a comprehensive ecosystem encompassing chip design, manufacturing equipment, raw materials, research, and talent development.

The initiative reflects India’s broader vision of transforming from a major semiconductor consumer into a globally competitive innovation and manufacturing hub.

Moving Beyond Fabs

Speaking about the next phase of the India Semiconductor Mission, Union Minister for Railways, Communications, Electronics and Information Technology, Ashwini Vaishnaw, emphasized that establishing semiconductor fabrication facilities was only the beginning. Sustained growth in the industry, he noted, requires the development of a complete supporting ecosystem.

Unlike the first phase, which focused heavily on attracting investments for fabrication, assembly, testing, marking, and packaging (ATMP) facilities, Semicon 2.0 will prioritize strengthening the underlying infrastructure that supports semiconductor production.

Industry analysts have long maintained that semiconductor manufacturing depends on a highly specialized network of equipment suppliers, software developers, materials providers, and research institutions. The new strategy seeks to address these requirements through targeted investments and policy support.

Focus Areas Under Semicon 2.0

The government plans to channel resources into several critical segments of the semiconductor value chain:

Chip Design and Intellectual Property

A major focus of the initiative is encouraging Indian companies and startups to develop and own semiconductor intellectual property (IP). By fostering indigenous chip design capabilities, India aims to create greater value within the domestic ecosystem rather than relying solely on outsourced engineering services.

Semiconductor Equipment Manufacturing

The government is also looking to attract global semiconductor equipment manufacturers to establish production facilities in India. Developing a domestic equipment ecosystem is expected to strengthen supply chains and reduce reliance on imports.

Raw Materials and Specialty Chemicals

Semicon 2.0 places significant emphasis on building local supply chains for semiconductor-grade materials, including silicon wafers, specialty chemicals, and high-purity gases. These inputs are essential for advanced semiconductor manufacturing and are often vulnerable to global supply disruptions.

Experts believe that expanding into equipment and materials manufacturing will enhance India’s resilience against geopolitical uncertainties and supply-chain bottlenecks.

Strengthening India’s Chip Design Ecosystem

One of the defining features of Semicon 2.0 is its emphasis on productization—transforming semiconductor concepts into commercially viable products.

India already serves as a major global hub for semiconductor design, with multinational companies operating large engineering centers in Bengaluru, Hyderabad, Noida, and other technology clusters. However, much of the intellectual property generated in these centers remains owned by overseas corporations.

Through financial incentives, design tools, and infrastructure support, the government aims to empower Indian startups and domestic firms to develop proprietary chip technologies and compete globally.

This shift from engineering services to product innovation could significantly increase India’s participation in the high-value segments of the semiconductor industry.

Building a Skilled Workforce

Talent development is another cornerstone of Semicon 2.0. The semiconductor sector requires highly specialized expertise across multiple disciplines, creating a growing demand for skilled professionals.

To address this requirement, the government plans to strengthen semiconductor-focused education and training programs in engineering institutions and universities.

The initiative is expected to support the development of:

• Design Engineers specializing in VLSI and electronic design automation (EDA).
• Process Engineers responsible for managing complex fabrication processes.
• Maintenance Technicians trained to operate and maintain advanced semiconductor manufacturing equipment.

By aligning academic curricula with industry requirements, India aims to ensure a steady pipeline of semiconductor-ready talent.

Positioning India in the Global Semiconductor Supply Chain

The launch of Semicon 2.0 comes at a time when India has already attracted multi-billion-dollar investments in semiconductor fabrication, packaging, and testing facilities.

As global demand for artificial intelligence, electric vehicles, data centers, consumer electronics, and next-generation communication technologies continues to rise, countries worldwide are seeking to diversify semiconductor supply chains.

With its focus on technology, talent, materials, equipment, and innovation, Semicon 2.0 is expected to strengthen India’s position as a key player in the global semiconductor ecosystem while advancing the country’s goal of technological self-reliance.