Semicon 2.0 Scheme Worth ₹1.27 Lakh Crore Launched to Boost Chip Industry Value Chain

Government Boosts Semiconductor Ecosystem with Semicon 2.0 Scheme

The Indian government has taken a significant step towards making the nation self-reliant in the semiconductor sector by notifying the 'Semicon 2.0' scheme. With a total outlay of ₹1.27 lakh crore, this ambitious plan aims to strengthen the entire ecosystem of semiconductor design and manufacturing.

The objective is to foster the development of the complete value chain of the chip industry within India. The new scheme will provide financial assistance across various crucial segments of the semiconductor industry, including chip design, manufacturing, assembly, packaging, and testing.

Furthermore, units involved in the production of capital equipment used in chip manufacturing will also benefit from this initiative. The government has structured this comprehensive scheme into six distinct major segments to cater to the specific needs of each area.

Focus on Indigenous Development of Strategic Technologies

A key goal of the Semicon 2.0 scheme is to promote the indigenous development of technologies essential for national strategic and critical infrastructure. The government is emphasizing the creation of robust, reliable, and self-sufficient semiconductor technologies within the country.

Under this scheme, indigenous development of semiconductor Intellectual Property (IP) cores, chips, System-on-Chips (SoCs), and modules for electronic products will be undertaken. The priority for these technologies will be determined periodically based on national importance and strategic requirements.

Development Spans Computing to Sensor Technology

The scheme's scope includes the development of fundamental technology components necessary for various technologies such as computing, memory, radio frequency (RF), power, networking, and sensors. There will also be a particular emphasis on developing standard IPs, which will further strengthen India's capabilities in the semiconductor domain in the future.

Currently, India has three semiconductor/chip manufacturing plants actively in operation. Additionally, several new semiconductor projects are underway across different states in the country, with expectations of significant expansion in India's chip manufacturing capacity in the coming years.

Prime Minister Narendra Modi also highlighted the expansion of the semiconductor sector in his Independence Day address, anticipating the launch of 5 to 8 new semiconductor plants within the next 7-8 years. The Semicon 2.0 scheme is considered a crucial pillar of this broader national strategy.