Semicon 2.0 Notified: How Rs 1.27 Lakh Crore Outlay Will Reshape India’s Chip Manufacturing Sector; Top 3 Critical Priorities

After a fruitful outcome from Semicon 1, the first phase of the support scheme under the India Semiconductor Mission, the government has notified the Semicon 2.0 scheme with an outlay of Rs 1.27 lakh crore to boost the chip manufacturing ecosystem in the country. 

The Semicon 2.0 scheme is divided into six segments, which include Indian companies designing chips, setting up units for capital equipment required for chip production, semiconductor fabs, chip assembly, packaging and testing, etc.

The first phase of the India Semiconductor Mission was launched in December 2021 with a financial outlay of Rs 76,000 crore, aimed at building a domestic semiconductor and display manufacturing ecosystem. 

Semicon 2.0 To Provide Fiscal Support: Notification

"The government has decided to provide ... sustained policy support to the semiconductor sector in India by notifying the Semicon 2.0 Scheme for the development of semiconductor design and manufacturing ecosystem in India, the government notification said. 

"Semicon 2.0 provides fiscal support to various verticals across the complete value chain of the semiconductor industry, ranging from chip design, fabrication and packaging to various segments of the semiconductor ecosystem," the notification said.

What's India Aiming With Semicon 2.0: Top 3 Priorities 

1- According to the notification, the scheme has an aim to build resilient, trusted, and sovereign semiconductor technologies. Under the scheme, the focus will be on designing, development, and deployment of target segment technologies, considering national strategic and critical infrastructure.

2- The main target under the scheme would be local development of semiconductor Intellectual Property (IP) cores, Chips, System-on-Chips (SoCs), and modules for electronic products. The product may be identified from time to time based on national importance and strategic priorities.

3- The notification states that building blocks will be developed for this, which will include standard IP for different types of compute, memory, RF, power, networking, sensors, etc.

Semicon 2.0: FAQs

• What is the Semicon 2.0 scheme?
   
  Semicon 2.0 is the second phase of the India Semiconductor Mission, launched with a budget outlay of Rs 1.27 lakh crore to build a resilient and sovereign semiconductor ecosystem in India, building upon the initial success of Semicon 1.0.
   
• What are the key pillars of the Semicon 2.0 initiative?
   
  The scheme is structured around six strategic pillars: Chip Design, Machines & Materials, Fabrication (Fabs), ATMP/OSAT industry, Research & Development (R&D), and Talent Development.
   
• How does Semicon 2.0 differ from the first phase?
   
  While Semicon 1.0 (Rs 76,000 crore outlay) focused on establishing initial domestic manufacturing, Semicon 2.0 (Rs 1.27 lakh crore) aims to deepen the entire value chain—from IP and chip design to precision manufacturing of equipment and speciality materials—to position India as a global semiconductor hub.

(With inputs from agencies–PTI)