India Semicon 2.0: Centre Prioritises Security in Local Chip Design

The Indian government is preparing to launch the Semicon 2.0 initiative, with a renewed focus on leveraging national security concerns to create a sustainable market for domestically designed chips. Officials indicate that the upcoming framework will encourage the use of 'Made in India' semiconductors in critical infrastructure, including telecommunications, defence, and power grids. By linking security requirements to hardware procurement, the Centre aims to ensure that domestic chip designers have a guaranteed base of demand, reducing reliance on imported silicon from potentially vulnerable supply chains.

This development comes as the Ministry of Electronics and Information Technology (MeitY) finalises the investment details for the second phase of the India Semiconductor Mission. The initial $10 billion programme, launched in 2021, focused on attracting large-scale fabrication plants. Semicon 2.0 is expected to expand this by offering deeper incentives for design-led manufacturing and the development of local intellectual property. The government’s goal is to foster an ecosystem where Indian startups and established firms can design chips tailored to local security standards, ensuring digital sovereignty.

The focus on security-centric chip design aligns with the broader 'Atmanirbhar Bharat' vision. Industry experts suggest that by creating a 'security market' for Indian chips, the government can help local companies overcome the high entry barriers of the global semiconductor industry. This strategy not only addresses cybersecurity threats but also positions India as a reliable partner in the global 'China Plus One' supply chain strategy. As the world moves toward more fragmented tech ecosystems, India's ability to produce secure, locally designed hardware will be a critical factor in its long-term economic and national security.