The Indian government is gearing up to launch Semicon 2.0, an ambitious expansion of its semiconductor mission, aimed at establishing India as a global hub for chip manufacturing and innovation. Building on the success of Semicon 1.0, which was launched in December 2021 with an outlay of ₹76,000 crore, Semicon 2.0 will focus on strengthening the entire semiconductor value chain, from design and manufacturing to supply chain management and workforce development. With the global semiconductor market projected to grow exponentially, this initiative seeks to position "Made-in-India" chips as competitive players on the global stage.
Expanded Scope:
Unlike its predecessor, Semicon 2.0 will address the complete semiconductor value chain, including design, fabrication, packaging, and testing. The program will also focus on modernising existing facilities, such as the Semiconductor Laboratory (SCL) in Mohali, which is set for an upgrade.
New Semiconductor Units:
The government has already approved five semiconductor units under Semicon 1.0, with construction underway in Gujarat and Assam. Micron Technology’s high-end fabrication plant in Sanand, Gujarat, India's first, is expected to become operational by late 2024, with a cumulative investment of over ₹1.5 lakh crore across all approved projects.
Global Partnerships and Investments:
Semicon 2.0 aims to attract foreign investments by fostering collaborations between Indian companies and global semiconductor giants. The initiative will also promote indigenous IP generation and facilitate technology transfers to enhance India's self-reliance in semiconductor manufacturing.
Workforce Development:
A significant focus will be placed on skill development programs to create a talent pool capable of supporting India’s growing semiconductor ecosystem.
Economic Impact:
The program aligns with Prime Minister Narendra Modi’s vision of expanding India’s electronics sector from its current valuation of $150 billion to $500 billion by the end of the decade, creating approximately 6 million jobs.
India is rapidly emerging as a key player in the global semiconductor industry. Events like Semicon India 2024, held in Greater Noida, have showcased India's growing capabilities and attracted global attention. The event highlighted India's efforts under the "Make in India" and "Atmanirbhar Bharat" initiatives, emphasising domestic manufacturing and R&D.
The government has also set up the India Semiconductor Mission (ISM) as an independent division under Digital India Corporation to oversee long-term strategies for developing semiconductor facilities and fostering innovation. ISM plays a pivotal role in coordinating efforts across ministries, academia, and industry stakeholders.
