India, Sept. 17 -- The Government of India has issued a release:
Union Minister for Electronics and Information Technology, Shri Ashwini Vaishnaw, today outlined the implementation approach and emerging investment momentum under Semicon 2.0, highlighting the Government's focus on developing the complete semiconductor ecosystem in India.
Addressing the media during SEMICON India 2026, Shri Vaishnaw said that while Semicon 1.0 focused on laying the foundation for India's semiconductor industry, Semicon 2.0 is aimed at putting the wider ecosystem in place and scaling capabilities across the semiconductor value chain.
The Minister said that investment commitments of around Rs.1 lakh crore (approximately USD 11-12 billion) have already been received under the Semicon 2.0 ecosystem. These commitments are expected to translate into significant economic activity and employment, with close to 1 lakh new employment opportunities expected to be created across the semiconductor ecosystem. The investments are expected to materialize over the next two to three years, with companies announcing their respective investments as and when they receive the required board and shareholder approvals.
Six pillars to deepen the semiconductor ecosystem
The Minister outlined the Six broad pillars through which Semicon 2.0 will deepen India's semiconductor capabilities:
The Government is targeting 200 semiconductor design start-ups under the expanded approach. The Minister noted that 20 of the 105 semiconductor start-ups supported during the first phase have already secured Venture Capital funding, describing this as a significant achievement and a basis for scaling up the target under Semicon 2.0.
The design ecosystem will also support companies in moving beyond individual chip design towards systems design, enabling Indian talent and companies to address increasingly complex technology requirements.
The Minister highlighted the growing interest of global capital equipment companies in establishing operations in India, including capabilities for design as well as manufacturing. He said that India's established design capabilities can support global equipment manufacturers in setting up design operations, generating high-quality employment for Indian youth.
Companies establishing manufacturing operations can also benefit from India's developing precision manufacturing ecosystem, which serves multiple sectors including aerospace, aviation, semiconductors and advanced electronics.
In addition, the Government has set a target of training 1 lakh technicians over five years. This will involve partnerships with industry and international institutions, including institutions such as ITRI, Taiwan, to establish training capabilities aligned with the requirements of India's emerging semiconductor manufacturing facilities.
Focus on building the ecosystem around semiconductor manufacturing
The Minister emphasised that the objective of Semicon 2.0 is not limited to establishing individual semiconductor manufacturing facilities but to build a complete ecosystem around them.
He highlighted the importance of developing domestic capabilities in capital equipment, materials, gases, chemicals, precision manufacturing and supply chains. Such capabilities, he said, would help create a deeper and more resilient semiconductor ecosystem and support India's long-term growth in the sector.
The Minister also highlighted the growing importance of resilient global supply chains and said that India is seeing increasing interest from semiconductor companies looking to diversify and strengthen their supply chains.
Global competitiveness remains central to semiconductor manufacturing
The Union Minister said that global competitiveness in terms of quality and cost has remained a key consideration from the selection of semiconductor projects through construction and production.
He said that the semiconductor facilities that have entered commercial production are competing in the global market, with production capacity being taken up by customers. He also noted the rapid pace of capacity creation at the facilities currently being established.
11 MoUs and 5 Announcements to strengthen semiconductor value chain
As part of SEMICON India 2026, 11 MoU exchanges and announcements were undertaken covering semiconductor manufacturing, packaging, materials, equipment, design, talent development and related ecosystem capabilities.
Key agreements and announcements included:
India's semiconductor journey moves towards a full-stack ecosystem
According to the Minister, the semiconductor industry is highly complex and requires sustained efforts across multiple layers of the value chain. Semicon 2.0 has therefore been designed to build capabilities not only in chip manufacturing but also in design, equipment, materials, advanced packaging, research, talent and supply chains.
He said that India's semiconductor journey will require a calibrated and long-term approach, with the objective of establishing an ecosystem capable of supporting sustained growth over the coming decades.
The Government's approach under Semicon 2.0 is aimed at enabling India to emerge as a trusted and resilient participant across the global semiconductor value chain while creating high-quality employment and strengthening domestic technological capabilities.
SEMICON India 2026 which runs till September 19th at Yashobhoomi , New Delhi, features more than 600 participating companies and is expected to attract around 50,000 visitors, with representatives from 52 countries, more than 400 executives and over 150 speakers. The exhibition features six Country Pavilions representing Japan, South Korea, Malaysia, the Netherlands, Singapore and Sweden, along with 12 State booths, a Startup Pavilion, Innovation Showcase, Student Hackathon and Workforce Development Pavilion.
Disclaimer: Curated by HT Syndication.
