India Notifies $15.4 Billion Semicon 2.0 Scheme to Boost Chip Industry

India's central government has officially announced the Semicon 2.0 scheme, allocating ₹1.28 lakh crore (approximately $15.4 billion USD). This initiative is designed to accelerate the development of India's semiconductor design and manufacturing ecosystem and bolster domestic capabilities across the entire chip value chain.

The program extends government support beyond chip fabrication to encompass the infrastructure and expertise necessary for building a domestic semiconductor ecosystem. Support will cover chip design, fabrication, assembly, testing (ATMP), advanced packaging (OSAT), research and development (R&D), and talent development. Startups and SMEs can receive seed funding of up to ₹15 crore (approximately $1.8 million USD) for design components, along with equity co-investment support.

Semicon 2.0 is structured around six pillars: semiconductor design, machinery and materials, fabs, assembly and packaging, R&D, and talent development. The objective is to foster a robust and self-reliant semiconductor ecosystem in India by supporting the development and deployment of technologies for critical and strategic infrastructure.

Furthermore, India aims to train 100,000 additional semiconductor engineers through this program. This target is intended to address the projected global shortage of approximately 1 million workers in the sector by 2032. The country has already trained 85,000 semiconductor engineers, achieving a previously set 10-year goal in just four years.