The India Electronics and Semiconductor Association (IESA) welcomes the official notification of Semicon 2.0, building upon the success of the Semicon India Programme and marking an important step towards strengthening India’s semiconductor design and manufacturing ecosystem.
With a total budget outlay of ₹1,27,500 crore across the semiconductor value chain, Semicon 2.0 focuses on six core pillars—chip design, machines and materials, new fabs, ATMP/OSAT, R&D and talent development. IESA believes this comprehensive approach can significantly deepen India’s semiconductor capabilities, attract large-scale investments, create high-value employment and strengthen India’s position as a trusted global semiconductor partner.
Commenting on the notification, Mr. Ashok Chandak, President, IESA and SEMI India, said:
“The official notification of Semicon 2.0 is a very significant milestone. The speed with which the Government has moved from Cabinet approval to official notification sends a strong message of policy continuity, execution and commitment. For an industry that makes investments with a 10–15 year horizon, this continuity provides the confidence required for long-term investments. India is now moving from credibility to capability—and policy continuity will be a key enabler of this journey .The first phase of this program already created confidence by 12 approved projects, 100+ Design start Up’s support, 355+ institutes/60000 students having EDA tools availability.
“What makes Semicon2.0 particularly significant is its end-to-end approach. The six pillars cover the semiconductor value chain—from chip design and fabs to ATMP/OSAT, machines and materials, R&D and talent. This is not simply about building semiconductor factories; it is about building the ecosystem around them and creating sustainable capabilities in India. In today’s notification further detailing of the Semicon2.0 focus areas, financial incentives and scheme were narrated for all six pillars and each of them is already showing traction. From chips for strategic sectors identified under the PSA and NSA’s expert committee, to 70,000 students already trained under Chips to Startup and ₹1,000+ crore in VC funding already flowing to Indian design companies – these are credible proof points for the ecosystem that self-reliance is built brick by brick and Semicon 2.0 is a nation building exercise.”
Potential to Catalyse more than 5 Lakh Crore Investment
Mr. Chandak said, “Based on the current investment pipeline and the much broader scope of Semicon 2.0, IESA sees the potential for the programme to catalyse more than 5 lakh crore of cumulative private and industry investment over the next five to seven years, across fabs, ATMP/OSAT, equipment and materials, design, R&D and the wider supply chain. R&D Focus on 7-3 nm pathway, Silicon photonics, Micro LED’s , Compound semiconductors and support to OCI and large corporates in fabless sector and manufacturing related skilling is notable differentiations .”
The Government’s financial support should be seen as a catalyst rather than the total investment. Every semiconductor project creates a multiplier effect around it—generating demand for equipment, materials, chemicals, precision engineering, packaging, testing, logistics and talent. When this is combined with ECMS, MPMS and EMC, the multiplier can become significantly larger.”
The aspiration is to create a virtuous semiconductor and electronics flywheel where design drives IP and products; fabs and packaging create manufacturing capability; equipment and materials strengthen the supply chain; electronics manufacturing creates demand; and the resulting scale drives further investment, R&D and innovation.
Semicon 2.0 + Electronics Ecosystem
IESA also highlighted the importance of convergence between Semicon 2.0 and India’s broader electronics manufacturing initiatives, including the Electronics Components Manufacturing Scheme (ECMS), Mobile Phone Manufacturing Scheme (MPMS) and Electronics Manufacturing Clusters (EMC).
“Semicon 2.0, together with ECMS, MPMS and EMC, creates an integrated policy architecture where semiconductors and electronics can feed and strengthen each other. This can accelerate domestic value addition, create opportunities for startups and MSMEs, attract global suppliers and enable India to move progressively from manufacturing for the world to creating and owning technology for the world”, Mr. Chandak added.
IESA Applauds MeitY and ISM
IESA congratulated Hon’ble Minister Shri Ashwini Vaishnaw, Secretary, MeitY Shri S. Krishnan, CEO, India Semiconductor Mission Shri Amitesh Kumar Sinha, and the entire MeitY–ISM team for their leadership, continued industry engagement and speed of execution.
“IESA appreciates the leadership of MeitY and ISM in moving swiftly from policy approval to notification. This combination of vision, continuity and execution is creating confidence across the semiconductor ecosystem. It gives domestic and global investors greater visibility to plan long-term investments in India.”
IESA reaffirmed its commitment to work closely with MeitY, ISM, State Governments, industry, academia and global partners through its initiatives in Startup Mitra, Workforce Development, industry-led R&D through IDSPS, policy advocacy and international collaborations.
“The real success of Semicon 2.0 will not be measured by the number of fabs alone. It will be measured by the IP and products we create, the companies we build, the talent we develop, the value we retain and the global markets we serve. The aspiration should be to take India from policy credibility to industrial capability, from capability to scale, and ultimately to global technology leadership”, Mr. Chandak said.
Six Core Pillars – Building India’s Semiconductor Capability – ambitions :
- Chip Design: Building on India’s strong design capabilities to create hundred’s of fabless semiconductor companies by 2030–32, with an aspiration for 5–10 globally scaled semiconductor product companies and 500+ indigenous IP/products.
- New Fabs: Expanding India’s manufacturing base with an industry aspiration 7+ additional operating fabs/specialty fabs by 2030–32, across silicon – logic & memory, compound and other strategic semiconductor technologies. Entry into 7 nm node Fabs and designs.
- ATMP/OSAT: Building India into a global advanced-packaging and testing hub, with an aspiration of doubling globally competitive ATMP/OSAT and advanced-packaging facilities/capabilities.
- Machines & Materials: Creating a strong domestic supply chain with an aspiration of large pool Indian companies across semiconductor equipment, materials, specialty chemicals, gases and precision engineering, several technology collaborations and JV’s including 10–15 companies with potential to become global suppliers.
- Research & Development: Establishing major semiconductor R&D centres/centres of excellence and generating 100+ commercially relevant indigenous technologies/IPs, with greater emphasis on industry-led R&D and technology commercialisation.
- Talent Development: Building a few Lacs semiconductor and advanced-electronics workforce by 2030–32, with deeper skills across chip design, manufacturing, equipment, materials, advanced packaging and R&D.
IESA emphasises that these are industry aspirations and outlooks, intended to complement the Government’s Semicon 2.0 objectives and provide a measurable direction for the ecosystem.
