India Approves Semicon 2.0 With $13.23 Billion Outlay To Boost Chip Ecosystem

The central government has approved the second phase of its semiconductor strategy, Semicon 2.0, with an allocation of INR 1.275 trillion (US$13.23 billion). This phase expands support beyond basic fabrication to include chip design, advanced packaging, equipment manufacturing, and talent development. As of July 2026, three of the 12 approved projects have already commenced commercial production, including a significant OSAT facility in Sanand.

The strategy aims to make India a global hub for semiconductor manufacturing, catering to automotive, industrial, and AI applications. A major highlight is the 300 mm wafer fabrication plant in Dholera, which is backed by an estimated $11 billion investment. By diversifying support across the entire semiconductor value chain, the government is creating a resilient ecosystem that reduces dependence on imports and attracts global technology partners.

Five semiconductor plants are expected to be fully operational by the end of 2026. This rapid progress is expected to bolster global confidence in India's manufacturing capabilities. Stakeholders should watch for further announcements regarding the remaining projects and the impact of these facilities on the domestic supply chain for high-tech industries, particularly in the automotive and AI sectors.