Govt notifies ₹1,27,500-crore Semicon 2.0; spells out eligibility norms, sops for chip ecosystem
The Indian government has officially notified the ₹1,27,500-crore Semicon 2.0 scheme to boost domestic semiconductor manufacturing and design. The program provides fiscal incentives for fabs, packaging, and R&D to foster a self-reliant chip ecosystem.
Why it matters
This is a strategic move to secure India's position in the global semiconductor supply chain amid rising geopolitical tensions.
The government on Monday (August 31, 2026) notified the Semicon 2.0 scheme, setting in motion the ₹1,27,500-crore plan that seeks to deepen India’s semiconductor ambitions — from chip manufacturing to a full-stack ecosystem encompassing indigenous design and IP, equipment, materials, advanced packaging, R&D and talent development.
The report provides a neutral summary of government policy and its stated objectives.
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