Delhi Chief Minister Rekha Gupta on Wednesday, 15 July 2026 welcomed the Union Cabinet's approval of the Semicon 2.0 programme, a landmark semiconductor initiative with an outlay of ₹1,27,500 crore, describing it as a historic decision that will strengthen India's technological self-reliance and power the economy of the future.

Context

Posting on X, CM Rekha Gupta said the Cabinet decision, taken under the leadership of Prime Minister Narendra Modi, was an 'ऐतिहासिक निर्णय' ('historic decision') that would give new energy to India's technological self-reliance. She added that the move would give fresh momentum to Delhi's semiconductor vision, reinforcing the capital's resolve to become a leading centre for chip design, research, innovation, and advanced technology.

The Chief Minister's remarks come as the Union Cabinet formally cleared the expanded semiconductor programme, scaling up fiscal support well beyond the initial outlay committed under earlier national semiconductor initiatives.

Policy Backdrop

India's semiconductor push has been building since December 2021, when the Union Cabinet approved the India Semiconductor Mission with an initial outlay of ₹76,000 crore to attract investment in fabrication, assembly, testing, and design. Semicon 2.0 represents a significant expansion of that framework, raising the total committed outlay to ₹1,27,500 crore.

The programme sits within the broader Atmanirbhar Bharat framework, which has sought to reduce India's heavy dependence on semiconductor imports and integrate domestic industry into global chip supply chains. Successive Cabinet decisions have progressively enlarged fiscal support across the semiconductor value chain.

Stakeholders and Impact

The semiconductor industry, Delhi's technology ecosystem, and research institutions are among the primary stakeholders expected to benefit from the programme. CM Gupta specifically highlighted chip design, research, innovation, and advanced technology as the domains where the capital aims to emerge as a front-runner.

For Delhi, which lacks the large land parcels required for fabrication plants, the emphasis on design and R&D clusters aligns with the city's existing strengths in engineering talent and academic institutions. A national programme of this scale could accelerate the formation of design centres and start-up clusters in the capital.

What's Next

Attention will now turn to the rollout of specific project approvals, disbursement of funds to Delhi-based design centres, and potential new agreements with global chip firms in the coming fiscal year. CM Gupta's statement signals that the Delhi government intends to actively position the capital to capture design and innovation mandates under the expanded national programme.

If the programme's implementation proceeds on schedule, Semicon 2.0 could mark a structural shift in India's position within the global semiconductor value chain, with Delhi aiming to anchor the design and R&D end of that chain.