India is entering the next phase of its semiconductor journey. Union Electronics and IT Minister Ashwini Vaishnaw has outlined the roadmap for Semicon 2.0. He said the foundation built under the first phase will now support a wider semiconductor ecosystem.
Speaking during SEMICON India 2026 in New Delhi, Vaishnaw said India must expand beyond chip manufacturing. The next phase will focus on design, equipment, materials, advanced packaging, research and skilled manpower.
The government has also received major investment commitments for the sector. Around ₹1 lakh crore in commitments have emerged under Semicon 2.0, with close to one lakh new jobs expected across the ecosystem.
Semicon 2.0 Moves Beyond the Foundation
Vaishnaw said Semicon 1.0 focused on creating the foundation for India’s semiconductor industry. That phase helped bring manufacturing projects, build talent and attract global companies.
Semicon 2.0 will now work on expanding the complete value chain. The government wants India to develop capabilities from chip design to manufacturing and packaging.
The minister said the country has already moved from planning to execution. Several semiconductor projects have reached different stages of development, while commercial production has begun in some areas.
This shift comes as countries around the world compete to secure semiconductor supply chains. Rising demand from artificial intelligence, electronics and data centres has increased the strategic importance of chips.
Six Pillars of Semicon 2.0
Semicon 2.0 rests on six broad pillars. They cover chip design, machines and materials, semiconductor fabrication, advanced packaging, research and development, and talent development.
The design pillar aims to strengthen India’s growing chip-design ecosystem. The government also wants more Indian companies and startups to develop semiconductor products.
The machines and materials pillar focuses on building domestic capabilities for equipment and critical inputs. This can reduce dependence on overseas suppliers and strengthen supply-chain resilience.
The programme also supports more fabrication plants. At the same time, it seeks to expand advanced packaging facilities, which play an important role in modern chip production.
Focus on Chip Design and Startups
India wants to increase its presence in semiconductor design. Vaishnaw has said Semicon 2.0 aims to support at least 200 companies and startups in the chip-design space.
The government also wants to move beyond traditional chip design. It plans to encourage system-level innovation and product development.
This approach could connect semiconductor design with sectors such as automobiles, telecommunications, consumer electronics and artificial intelligence.
According to the government, students from Tier-II and Tier-III cities have already designed more than 250 semiconductor chips. The country has also developed 85,000 semiconductor engineers against an earlier 10-year target.
One Lakh Technicians to Be Trained
Skilled manpower remains a major part of the new strategy. The government plans to train around one lakh technicians and industry-ready professionals.
Vaishnaw has stressed the need for practical skills alongside academic training. The plan includes upgrading training curricula and developing specialised institutes.
The government also plans to establish a precision manufacturing institute. Such institutions can help create workers with specialised skills for semiconductor equipment and manufacturing.
The wider talent push aims to support India’s expanding semiconductor facilities. It also seeks to create a workforce that can serve global companies operating in India.
Investment Momentum Builds
Semicon 2.0 has attracted significant interest from global and domestic companies. Vaishnaw said investment proposals worth around $11 billion to $12 billion have emerged under the second phase.
These proposals cover equipment, materials, gases, chemicals and substrates. Several global companies are considering investments, although some proposals still require internal approvals.
The government has also approved a total outlay of ₹1,27,500 crore for Semicon 2.0. The programme aims to strengthen the complete semiconductor ecosystem rather than focus only on fabrication plants.
Around ₹1 lakh crore in investment commitments could translate into nearly one lakh employment opportunities across the wider ecosystem, according to the government.
Global Chip Competition Intensifies
India’s semiconductor push comes during a major shift in the global chip industry. Countries are seeking to diversify supply chains amid geopolitical tensions and growing demand.
The United States, Taiwan, South Korea, Japan, China and European economies have invested heavily in semiconductor capabilities. India is seeking a larger role in this global network.
More than 600 companies from 52 countries participated in SEMICON India 2026. The event highlighted growing international interest in India’s semiconductor ambitions.
US semiconductor equipment company Applied Materials has announced plans to invest $5 billion in India over the next decade. The investment will support research, supply-chain development and workforce expansion.
India Moves Towards a Complete Ecosystem
Vaishnaw has argued that India must build more than fabrication capacity. A strong semiconductor industry also requires equipment suppliers, materials manufacturers, designers, packaging companies and research institutions.
This wider ecosystem can help Indian companies participate in more stages of the global semiconductor value chain.
The government is therefore linking semiconductor policy with electronics manufacturing, artificial intelligence and other technology sectors. The goal is to create stronger connections between chip production and final products.
Made-in-India Chips Reach Global Markets
India’s semiconductor sector has also started showing signs of commercial progress. Vaishnaw said India-made and India-designed chips are now being exported to countries including Japan, Germany, Switzerland and China.
He said chips packaged by companies operating in India are already competitive in terms of quality and cost. This marks an important development for an industry that India began building at scale only in recent years.
The Tata Electronics fabrication plant in Gujarat is another major part of India’s semiconductor plans. The facility is expected to produce its first wafer in 2028, according to current project timelines.
From Silicon to Systems
The government’s long-term ambition now extends from silicon to complete systems. This means connecting chip design, manufacturing, packaging and electronics production.
Vaishnaw has indicated that Semicon 2.0 will place greater emphasis on system design and product development. This could help Indian companies capture more value from the semiconductor industry.
The strategy also places research and development at the centre of the next phase. Stronger R&D can help India develop indigenous technologies and reduce dependence on imported technology.
India’s Next Semiconductor Phase
Semicon 2.0 marks a broader phase in India’s semiconductor strategy. The first phase focused on establishing the foundation. The second phase aims to expand that foundation into a complete ecosystem.
The roadmap combines manufacturing, design, equipment, packaging, research and talent development. Investment commitments and new international partnerships have added momentum to the effort.
However, semiconductor manufacturing remains highly complex and capital intensive. India will need sustained investment, specialised talent and reliable supply chains to build a competitive industry.
For now, the government is seeking to move India’s semiconductor story from initial groundwork to large-scale execution. Vaishnaw’s roadmap for Semicon 2.0 reflects that shift as global competition for chip capacity and technology continues to intensify.