India approves Semicon 2.0 with Rs 1.27 lakh crore
Analysis based on 69 articles · First reported Jun 30, 2026 · Last updated Jul 20, 2026
The approval of Semicon 2.0 is expected to boost India's semiconductor ecosystem, attracting significant investments and reducing import dependence. This policy move is likely to positively impact domestic electronics manufacturing and related industries, while global semiconductor companies may see India as an attractive alternative manufacturing destination.
The India — Union Council of Ministers, chaired by Prime Minister Narendra Modi, approved the Semicon 2.0 programme with a budget outlay of Rs 1.27 lakh crore (Rs 1,27,500 crore) on July 15, 2026. The programme aims to strengthen India's semiconductor design, manufacturing, research and development, and talent ecosystem. It builds on the first phase of the India Semiconductor Mission (Semicon 1.0), under which 12 projects with cumulative investments exceeding Rs 1.64 lakh crore were approved. Three facilities—by Micron Technology, Kaynes Technology, and CG Power and Industrial Solutions—have already commenced commercial production. Semicon 2.0 is structured around six pillars: chip design, manufacturing equipment and materials, fabrication plants, assembly and packaging, research and development, and talent development. The government expects the scheme to attract investments of around Rs 4 lakh crore and generate semiconductor production worth Rs 2 lakh crore. The programme also includes incentives for raw material suppliers and aims to reduce India's dependence on imported chips.
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