Synopsis

The Union Cabinet has approved Semicon 2.0, a significant initiative for India's semiconductor industry. This new phase builds upon the foundation of the India Semiconductor Mission's first phase. Semicon 2.0 expands its scope to cover chip design, equipment, materials, and advanced packaging.

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New Delhi: The Electronic Industries Association of India (ELCINA) has lauded the Union Cabinet’s approval of Semicon 2.0, the second phase of the India Semiconductor Mission (ISM), with a total budget outlay of Rs. 1,27,500 crore. At a time when India is working to strengthen its position in the global semiconductor supply chain, Semicon 2.0 – with its emphasis on deepening the country’s semiconductor and design ecosystem – is expected to provide a significant boost to India’s electronics and semiconductors industry.

What stands out is how Semicon 2.0 builds on the foundation laid by ISM 1.0. While the first phase focused on establishing India’s semiconductor base through ecosystem creation, ATMP/OSAT and early project execution, Semicon 2.0 is notably broader in scope – spanning chip design IP, equipment and materials, fabs, advanced packaging, R&D and talent development. ELCINA welcomes this ambition, which is essential if India is to emerge as a globally competitive semiconductor destination.

ISM 2.0 was announced by Finance Minister Nirmala Sitharaman in the Union Budget 2026, with an initial emphasis on design, equipment and materials. Today’s announcement confirms that Semicon 2.0 will broaden this framework further, encompassing design, machines and materials, fabs, the strengthening of ATMP/OSAT capabilities, research and development, and, significantly, talent development.

Sasikumar Gendham, President, ELCINA, said, in a statement, “ELCINA applauds the government’s vision and the scope of Semicon 2.0 for India’s semiconductor industry. What is especially commendable is the clear roadmap laid out for the sector’s future. By structuring Semicon 2.0 around six key pillars, the government has taken a holistic view of the industry. This is not merely about setting up a few fabs; it is about building the foundation for India’s semiconductor future over the coming years. While achieving this vision will require sustained effort, collaboration, investment, and strong industry-government partnership, the direction remains clear.”

Welcoming ISM 2.0 Rajoo Goel, Secretary General, ELCINA said: “Semiconductor technology is at the heart of all critical technologies and India must catch up with the global leaders in this domain. Strategic strength and ability to lead development of new technologies, R&D and emerging areas of expertise cannot be achieved without electronics and semiconductors. ISM 2.0 is a timely move that will take us to the next level and deliver immense social and economic benefits for India.”

ISM 1.0 delivered approvals, investments, and early commercial production. With Semicon 2.0 is aimed at deepening domestic capability across the value chain, from materials and equipment to advanced packaging, R&D, and skilled talent. If Semicon 1.0 was about proving that India can enter semiconductors, Semicon 2.0 is about proving that India can scale them.