India Gears Up for Semicon 2.0: Paving the Future of Semiconductor Manufacturing

The Ministry of Electronics and Information Technology (MeitY) has initiated the groundwork for India's forthcoming semiconductor initiative, dubbed Semicon 2.0. Discussions are underway with the Ministry of Finance and other stakeholders to finalize the details, according to MeitY Secretary S Krishnan, who confirmed the program's development.

Building upon the success of the first phase, the announcement of Semicon 2.0 arrives ahead of the Semicon India 2025 event, slated for September 2-4 at Yashobhoomi, Delhi, set to be inaugurated by Prime Minister Narendra Modi. Under Semicon 1.0, the Indian government dedicated Rs 76,000 crore towards establishing a robust semiconductor and display manufacturing ecosystem in the country.

The financial outlay from Semicon 1.0 has been nearly fully committed, with investments amounting to Rs 64,000 crore for chip fabrication facilities, Rs 10,000 crore for a semiconductor laboratory, and Rs 1,000 crore for a Design-Linked Incentive scheme. While minor funds remain, they could potentially accommodate 2-3 new projects, as stated by the Secretary.

Ten semiconductor manufacturing ventures have received governmental approval, totaling over Rs 1.60 lakh crore in investments across six states, including Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh. S Krishnan mentioned that commercially produced chips from the new facilities are anticipated before year's end, as he briefed the media in advance of Semicon India 2025.

Additionally, MEITY suggests that 2-3 smaller semiconductor projects might soon be announced, emphasizing the nation's growing semiconductor manufacturing momentum. Secretary Krishnan noted to ANI that unused funds from the India Semiconductor Mission 1.0 could support such initiatives.

(With inputs from agencies.)