India's Semicon 2.0 scheme, approved by the government this month with a total outlay of ₹1,27,500 crore, is designed to help Indian semiconductor firms scale operations, strengthen indigenous intellectual property, and convert world-class chip design into globally competitive products, IT Secretary S. Krishnan said on Friday, 31 July. Speaking at the second India Fabless Semiconductor Design Acceleration Workshop at IIT Delhi, Krishnan outlined the government's ambitions for the next phase of India's semiconductor journey.

From Foundation to Scale

The first phase — ISM 1.0 — laid the groundwork by expanding access to Electronic Design Automation (EDA) tools across more than 340 institutions, nurturing startups, and seeding a domestic innovation ecosystem. Semicon 2.0 now builds on that base with a sharper commercial mandate.

'Our focus is to help Indian companies scale, strengthen indigenous intellectual property, attract greater private investment, and, most importantly, transform world-class chip design into globally competitive products,' Krishnan said at the event.

What Semicon 2.0 Covers

To date, 12 manufacturing units have been approved under India's semiconductor programme, with a cumulative investment of over ₹1.64 lakh crore. The expanded Semicon 2.0 framework is intended to bring in startups, established companies, overseas collaborators, and investors into a more inclusive ecosystem.

Amitesh Kumar Sinha, CEO of the India Semiconductor Mission (ISM), said the new phase would strengthen long-term financing, improve market access, and support the transition from chip design to commercial products. 'We are laying the foundation for globally competitive Indian semiconductor companies,' Sinha noted.

Target Sectors and Industry Priorities

The workshop deliberated on building indigenous semiconductor products for high-growth sectors including mobile phones and wearables, consumer electronics and televisions, air conditioners and home appliances, IT hardware and data centres, and automotive and electric vehicles.

Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA) — which organised the event in collaboration with FITT, IIT Delhi — said the next phase must focus on creating Indian-owned semiconductor products, IP, and globally competitive technology companies. 'As India's electronics manufacturing ecosystem expands rapidly, semiconductor development must be driven by the needs of sectors such as mobile phones, consumer electronics, automotive, IT hardware, telecom, industrial electronics and power electronics,' he said.

The Broader Ambition

Krishnan underscored the government's commitment to building enabling infrastructure, expanding access to cutting-edge design tools, and creating conditions for industry-academia collaboration. 'Together, we must ensure that India's semiconductor capabilities translate into products designed, owned, and commercialised from India, positioning the country as a leading global semiconductor product nation,' he said.

This comes amid a global scramble for semiconductor self-sufficiency, with the US, European Union, Japan, and China each deploying multi-billion-dollar chip incentive programmes. India's push, if executed at scale, could position it as a credible alternative hub — particularly in fabless chip design, where capital requirements are lower than in fabrication.