The government has formalized its Semicon 2.0 program, approving an outlay of Rs 1,27,500 crore to support chip design, equipment, materials, fabs, advanced packaging, R&D, and talent development, with the aim of building a broader domestic supply chain.

Semicon 2.0 is designed to move India’s semiconductor ambitions beyond packaging, expanding the domestic supply chain to include design, equipment, materials, and fabrication, while attracting global investment.

Industry and security: In light of earlier warnings, industry players are now more aware and expected to implement protective measures against cyber threats and disruptions.

SEMICON India served as a major platform for announcements, with significant plans from Applied Materials (USD 5 billion through 2035), Lam Research (Rs 10,000 crore), Tata Electronics’ vendor park at Dholera, and Fujifilm’s Rs 800-crore semiconductor materials plant.

Other highlights from SEMICON India include Applied Materials’ long-term India plan, Lam Research’s sizable investment, Tata Electronics’ large vendor park project, and Fujifilm’s materials plant, signaling strong international and domestic momentum.

Introductory warning from IT Minister: India’s growing chip-design and manufacturing capabilities could be perceived as a threat by established global players, and the industry must stay vigilant against cyberattacks and disruptions.

Geopolitical risk: The minister cautions about risks from countries opposed to India’s rising semiconductor role and urges continuous vigilance.

Phase I of the program saw 12 semiconductor projects approved with investments over Rs 1.64 lakh crore, with five projects already in commercial production, including Micron, Kaynes, and CGSemi.

These early successes demonstrate momentum in building a domestic ecosystem, bringing together design, manufacturing, and supply chain capabilities.

Strategic goal: India seeks to establish a full domestic supply chain—from design to fabrication—attracting global manufacturers to design and produce semiconductor technologies within the country.

Funding appetite remains strong for Phase II, with investment commitments totaling about Rs 1 lakh crore, underscoring investor confidence in the expansion.