News · Chips & infrastructure

India approves Semicon 2.0, a ₹1,27,500 crore second round of support for its chip industry

It adds chipmaking machines and materials, more fabs, design and research to the first programme's plants. India's first fab is due to be commissioned in 2028.

Catching up: the original came out on . This story was published later, when the site opened.

₹1,27,500 cr

outlay approved for Semicon 2.0, India's second round of chip-industry support

Grade 1 · Primary

Source: Press Information Bureau, Government of India

What changed
India's Union Cabinet approved Semicon 2.0 on 15 July, with a total budget outlay of ₹1,27,500 crore for chip design and manufacturing.
Who it counts
Companies making or designing chips in India, and suppliers of the machines, materials, chemicals and gases chipmaking needs.
What it does not tell you
How the money will be split across the six pillars, or what it will produce. The release sets out aims, not allocations.

The full story Check the source

India's Union Cabinet approved Semicon 2.0 on 15 July, a second phase of support for the country's semiconductor industry with a total budget outlay of ₹1,27,500 crore [1].

It is built on six pillars: chip design; machines and materials; more fabs; packaging (ATMP and OSAT); research and development; and talent [1].

Companies making or researching chipmaking machines, and those making the materials, chemicals and gases it needs, will be incentivised, according to the release [1].

What it covers

The government says 12 manufacturing units approved under the first programme, Semicon 1.0, add up to over ₹1.64 lakh crore of investment [1].

They are a silicon fab, a silicon carbide fab, a gallium nitride micro-LED display fab and nine packaging units [1].

Three of them, Micron, Kaynes and CG Semi, had started commercial production. India's first fab is scheduled to be commissioned in 2028 [1].

It says 24 chip design projects from start-ups and small firms have been approved for support, and around 68,000 students trained on chip-design software at 315 universities [1].

What it does not tell you

How the ₹1,27,500 crore will be divided between the pillars, or over how many years. The release does not say [1].

The progress figures are the government's own account of its programme [1].

Sources and their grades

  1. Press Information Bureau, Government of India, Cabinet approves Semicon 2.0 - Government delivers on its commitment for a long-term policy support to Semiconductors in India. Read 29 September 2026. Grade 1 · Primary Posted 15 July 2026, 15:09 IST. The progress figures are the government's own account of its programme.

A grade says how much weight a source will take, from 1 (a body that can compel an answer and has nothing to sell) to 5 (somebody describing what they sell, or themselves). The standard sets out what each grade may be used for.

Filed under India, Semiconductors

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