India notifies Semicon 2.0 with a six-pillar strategy

India 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. With this, India could account for nearly 10 percent of the global semiconductor industry market in the coming years and is expected to play a much bigger role in the global semiconductor value chain, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said while addressing a press briefing in New Delhi on Monday. Vaishnaw added that the focus of the Government is towards making the country firmly embedded in the global semiconductor value chain, from wafer fabrication to chip production.  After releasing the notifications for all six pillars of the Semicon India Programme 2.0., Mr Vaishnaw noted that there is confidence among global semiconductor industry stakeholders that India is the right destination for major investments in the coming decades. 

Delhi: On the launch of Semicon 2.0, Union Minister Ashwini Vaishnaw says, "That time, the global semiconductor industry majors had a serious doubt about whether this can really happen in our country. That doubt is no longer there. That doubt is now replaced by confidence. There… pic.twitter.com/fXf6VSqc11

— IANS (@ians_india) August 31, 2026

“Now the time is ripe to move to next stage to develop semiconductor ecosystem through Semicon 2.0. The objective of the scheme is self reliance and fostering a globally competitive industry,” IT Secretary S Krishnan said at a briefing.
The notification follows the Union Cabinet’s approval of the India Semiconductor Mission 2.0 outlay on July 15, 2026. The Ministry of Electronics and Information Technology (MeitY) has outlined eligibility criteria and incentives for companies and institutions across six pillars and 10 categories. For commercial chip design, Indian companies owned or controlled by Indian citizens or Overseas Citizens of India (OCIs), including startups and MSMEs, will be eligible. Startups can receive seed funding, equity co-investment or other support, while larger companies can access royalty financing or equity co-investment.