India has formally notified its Semiconductor Mission 2.0 scheme with a massive outlay of ₹1.27 lakh crore to establish a domestic semiconductor ecosystem. The program aims to make India a global hub for chip manufacturing.
₹1.27 lakh crore
Total Outlay (Semicon 2.0)
⏳ Time Machine
How today’s news fits into the bigger picture
December 2021
First India Semiconductor Mission Launched
The Indian government launched its initial ₹76,000 crore incentive scheme to attract , design, and display fabrication units, signalling its strategic intent for the sector.
Early 2020s
Global Chip Shortage Hits Industries
The COVID-19 pandemic and geopolitical events led to severe global semiconductor shortages, disrupting automotive, electronics, and other industries, underscoring the critical need for diversified supply chains.
July 2023
Micron Announces India Investment
US chipmaker Micron Technology announced plans to build a new semiconductor assembly and test facility in Gujarat, with a total investment of $2.75 billion, marking a significant early success for India's chip ambitions.
Today
India formally notified its ₹1.27 lakh crore 'Semicon 2.0' scheme to boost domestic chip manufacturing.
What happens next?
The government expects new investment proposals for semiconductor fabrication and design units to accelerate over the next 12-18 months.
The Indian government has officially rolled out the 'Semicon 2.0' scheme, backed by a substantial outlay of **₹1.27 lakh crore**. This ambitious initiative provides a comprehensive framework across six key pillars, including chip design, fabrication (fabs), packaging, and talent development. The goal is to significantly boost domestic semiconductor manufacturing capabilities and attract global players to invest in India. By focusing on the entire value chain, the government aims to reduce India's reliance on imported chips and establish the country as a competitive player in the crucial global semiconductor supply chain, critical for sectors from electronics to defense.
💭 If you're wondering…
A 'fab' (short for fabrication plant) is a highly specialized, ultra-clean factory where semiconductor wafers are processed to create integrated circuits or chips. Building and operating a fab is extremely capital-intensive and technologically complex.
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