India is in the final stages of preparing Semicon 2.0, the next phase of its semiconductor mission, with the government set to broaden incentives beyond chip fabrication to support the country's wider semiconductor ecosystem, according to Amitesh Kumar Sinha, CEO of the India Semiconductor Mission (ISM).
Speaking during an online session hosted by the ISM on Monday, Sinha said the policy is being finalized and will be announced soon. He stated that the revised programme will "broaden the eligibility criteria and improve the incentive structure" for semiconductor design startups.
Expanding Beyond Fabs
Semicon 2.0 will expand support beyond fabs to include chip design startups as well as suppliers of semiconductor-grade chemicals, gases, materials, and manufacturing equipment. This reflects the government's push to build a complete domestic chip ecosystem rather than focusing only on manufacturing facilities. Unlike the first phase, which focused primarily on attracting fabrication and packaging investments, Semicon 2.0 aims to strengthen every layer of the chip value chain.
Localising the Supply Chain
Sinha emphasised that localising the supply chain is essential for India's semiconductor ambitions. A modern fabrication plant requires between 200 and 250 specialised chemicals, gases, and materials, most of which are currently imported. "We want the ecosystem to come to India, not just the fabs," he said, stressing that developing domestic suppliers would improve resilience and reduce import dependence.
First Phase Achievements
The first phase of the India Semiconductor Mission has approved 12 projects spanning chip design, fabrication, and packaging. Three facilities have commenced production:
| Facility | Type |
|---|---|
| Micron | Assembly and test plant |
| CG Power and Renesas | OSAT facility |
| Kaynes Semicon | Packaging unit |
These early successes provide a foundation for Semicon 2.0, which aims to deepen the domestic ecosystem and attract investment across the semiconductor value chain. The government plans to extend support to suppliers of critical inputs, alongside scaling talent development initiatives and indigenous research in critical semiconductor technologies.
Implications for Enterprise Technology Leaders
For CTOs, supply chain technology managers, and digital transformation leaders, Semicon 2.0 signals growing opportunities in India's semiconductor sector. The focus on localising chemicals, gases, and materials creates demand for logistics platforms, IoT tracking for sensitive materials, and customs technology to manage imports and local production. As the ecosystem matures, investments in supply chain automation and trade facilitation systems may become critical to support the complex, multi-layered chip value chain.
Sources:
