India prepares Semicon 2.0 scheme with ₹1.27 lakh crore budget for domestic chips
What happened
The India Semiconductor Mission is preparing to roll out Semicon 2.0, a ₹1.27 lakh crore second phase of its chip incentive program. The rollout coincides with India's first three domestic chip facilities beginning production. This second phase expands government support across chip manufacturing, equipment, and design incentives under a 12-year plan to reduce national import reliance.
Why it matters
The expanded funding and broader scope shift India's strategy from initial plant establishment toward building a comprehensive semiconductor ecosystem. By including targeted incentives for equipment manufacturing and chip design alongside fabrication facilities, the program aims to address supply chain bottlenecks. A 12-year horizon offers long-term policy visibility for companies considering major domestic capital commitments.
Bigger picture
The initiative aligns with a global push toward state-supported industrial policy in critical technology hardware. As nations seek to mitigate geopolitical risks and secure supply chains, government subsidies are increasingly expanding beyond basic chip fabrication to include manufacturing equipment and chip design, aimed at reducing reliance on foreign suppliers.
Watch next
Watch for the release of detailed policy guidelines for Semicon 2.0, the formal opening of application windows for equipment and design incentives, and operational output metrics from the first three chip facilities.