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 move comes at a time when semiconductors have emerged as a critical strategic resource globally, with the AI boom driving unprecedented demand for advanced chips and memory. At the same time, growing concerns over supply-chain vulnerabilities and shifting geopolitics have pushed global players to expand semiconductor capacities and reduce dependence on concentrated production hubs.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in