July 24, 2026 at 03:04 AM 2 min readtech
Government Approves Semicon 2.0 with ₹1.27 Trillion to Scale Chip Ecosystem
The upgraded initiative targets 70-75% domestic chip production by 2029 across fabrication, ATMP, and design startups.
Comprehensive Outlay for Semiconductor Self-Reliance:
The Indian government approved Semicon 2.0 on July 15, 2026, committing a comprehensive program outlay of ₹1.27 trillion to strengthen the domestic semiconductor ecosystem. This initiative builds directly on the foundational India Semiconductor Mission.
Targeting the Complete Semiconductor Value Chain:
Semicon 2.0 broadens the national strategy to encompass chip design, manufacturing equipment, fabrication plants, and the outsourced assembly and test industry. The overarching objective is for domestic industries to design and produce chips for 70-75% of domestic applications by 2029.
Empowering Startups and Design Projects:
As part of this expanded program rollout, 24 distinct design projects have received formal approval for financial assistance. Additionally, 105 startups and micro, small, and medium enterprises have been granted subsidized access to electronic design automation tools.
Pulse Intelligence
Context & ImpactContext & Background
- The central government previously launched the India Semiconductor Mission to incentivize initial commercial fabrication plants.
- Domestic electronic hardware manufacturers faced persistent supply chain vulnerabilities due to heavy reliance on imported silicon wafers.
Key Consequences
- Chip design startups will accelerate silicon tape-outs utilizing state-backed electronic design automation tools through 2027.
- New ATMP and fabrication facilities will begin breaking ground across designated electronics manufacturing clusters.
Market & Economic Impact
Not applicable.
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