Semicon 2.0 Programme – ₹1.27 Lakh Crore Plan

Reviewed by: GD Editorial Team Last fact-checked: 20.08.2026
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Semicon 2.0 Programme was approved by the Union Cabinet on 15 July 2026 with a total outlay of ₹1,27,500 crore. The second phase expands India’s semiconductor policy across chip design, fabrication, advanced packaging, equipment and materials, research and talent. It is an industrial programme, not one universal public-benefit form, and no single common application deadline was announced as of 20 August 2026.

Semicon 2.0 outlay and approval status

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The programme has moved beyond a proposal: Cabinet approval establishes the policy and funding envelope. Individual projects will still follow scheme-specific appraisal and implementation rules.

Programme itemVerified detail
Cabinet approval15.07.2026
Total outlayApproximately ₹1,27,500 crore
Implementing ecosystemIndia Semiconductor Mission under the Ministry of Electronics and Information Technology
Programme coverageDesign, manufacturing, packaging, equipment, materials, research and skills
Universal deadlineNo single programme-wide deadline announced as of 20.08.2026

Six pillars of Semicon India Programme 2.0

The official framework treats the supply chain as a connected system. The objective is not limited to a fabrication plant; it also addresses inputs, intellectual property, packaging and people.

PillarWhat it covers
Semiconductor designDomestic chip design capabilities, intellectual property and design-linked support
Equipment and materialsProduction equipment, specialty chemicals, gases, substrates and other inputs
Fabrication facilitiesSemiconductor and display manufacturing capacity
Advanced packagingAssembly, testing, marking, packaging and newer packaging technologies
Research and developmentApplied research, technology development and industry-academia collaboration
Talent developmentEngineers, technicians and specialist skills needed by the ecosystem

Who can seek support under Semicon 2.0

The likely applicants are companies and project consortia with technically and financially credible proposals. Students and jobseekers may benefit from the talent and employment ecosystem, but they do not apply to the entire ₹1.27 lakh crore programme through a single personal form.

StakeholderRelevant programme route
Chip design companies and startupsDesign and intellectual-property support under notified components
Fabrication project promotersScheme-specific applications for eligible manufacturing facilities
Packaging and testing companiesAdvanced packaging and ATMP/OSAT-related support routes
Equipment and material suppliersDomestic supply-chain proposals under the second-phase framework
Research institutionsR&D and industry-academia collaboration opportunities
Students and professionalsTraining, curriculum, research and employment opportunities announced separately
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Semicon 2.0 application process and deadline

The India Semiconductor Mission portal is the official programme point, but each scheme or project window can carry its own eligibility, forms and dates. Treating the Cabinet outlay as an always-open grant would be inaccurate.

Application questionPosition verified on 20.08.2026
Is there one common application formNo universal public form was announced for all six pillars
Is there one last dateNo single programme-wide deadline was published
Where project proponents should beginIndia Semiconductor Mission portal and the relevant notified scheme
What applicants should prepareProject structure, technology plan, financing, location, partners and compliance information
What to verify before submissionThe current guideline, eligible cost, incentive ceiling and application window for that component

Semicon India progress before Programme 2.0

The second phase builds on projects already approved under the earlier programme. These figures provide context for the larger outlay without implying that every approved project is already producing at full scale.

Progress indicatorOfficial figure
Startups designing chips105
Projects approved under the earlier programme12
Committed investment in those projectsApproximately ₹1.64 lakh crore
Projects in commercial production3 at the time of the Cabinet communication
Programme directionGreater domestic value addition and supply-chain resilience

Why equipment materials and packaging matter

A fabrication unit depends on imported tools, gases, chemicals and substrates unless the upstream chain also develops. Packaging is equally important because a fabricated wafer must be tested, assembled and integrated before it becomes a usable component.

Ecosystem layerStrategic role
Manufacturing equipmentEnables wafer processing, inspection, metrology and packaging operations
Specialty materialsSupplies wafers, gases, chemicals and process consumables
Advanced packagingImproves performance, integration, testing and final-product readiness
Chip designCreates intellectual property and products for Indian and global markets
Talent and R&DSupports technology absorption, operation and future innovation

How to apply for Semicon 2.0 opportunities

  1. Read the Cabinet approval and official fact sheet in Important Links.
  2. Identify the relevant pillar rather than assuming that one application covers the entire programme.
  3. Open the India Semiconductor Mission portal and review its current scheme pages.
  4. Check the guideline, applicant type, eligible expenditure and incentive structure for the chosen component.
  5. Use only the deadline printed in that scheme’s current notice.
  6. Keep corporate, technical, financial and land or infrastructure documents ready where required.
  7. Monitor MeitY and PIB releases for new operational guidelines or calls for proposals.

Semicon 2.0 incentive appraisal considerations

Cabinet approval does not mean every proposal automatically receives funding. Semiconductor projects are capital-intensive and technically demanding, so the relevant scheme authorities examine the technology, promoter capability, financing plan, implementation schedule and the portion of expenditure that qualifies for support. A credible proposal must explain what will be made in India, how the technology will be obtained or developed, and how the project connects with customers and suppliers.

Project proponents should separate the headline programme outlay from the incentive available to a particular project. The applicable guideline determines eligible costs, the permitted support formula, milestones and disbursement conditions. Announcements by a state government may add local incentives, but they do not replace the Central scheme or its appraisal. Applicants should therefore reconcile both packages and avoid counting the same expenditure twice unless the rules expressly allow it.

Appraisal areaEvidence a project may need
TechnologyProcess, product, intellectual-property and technology-partner details
FinanceProject cost, funding sources, promoter contribution and viability assumptions
ImplementationLocation, utilities, construction, equipment and milestone schedule
MarketTarget products, customer demand, capacity plan and sales strategy
Domestic value additionIndian design, suppliers, skills, manufacturing and research contribution

Semiconductor talent research and startup opportunity

The talent pillar matters because a factory cannot operate on capital equipment alone. Fabrication, packaging and design require different skills: process integration, equipment maintenance, materials science, verification, embedded systems, packaging design, reliability testing and production quality. New curriculum or training calls will be issued through their own institutions and agencies, so learners should follow recognised programmes rather than treating the main ISM registration page as a student scholarship form.

For startups, the opportunity extends beyond designing a complete processor. Useful products include application-specific chips, verification tools, semiconductor intellectual property, packaging solutions, sensors and equipment subsystems. The official statement that 105 startups are already designing chips shows that the policy is building a design base, but it does not promise automatic selection for every startup. Teams still need a defensible product, capable engineering, ownership or lawful access to intellectual property, and a route to fabrication and customers.

Opportunity areaExample capability
Chip designArchitecture, RTL, verification, physical design and reusable IP
Fabrication operationsProcess control, equipment engineering, yield and clean-room disciplines
PackagingAssembly, test, reliability, thermal design and heterogeneous integration
Materials and equipmentPrecision manufacturing, chemicals, gases, substrates and metrology
ResearchIndustry-linked prototypes, process development and technology transfer

How to verify a genuine Semicon 2.0 notice

Large programme figures attract unofficial forms and misleading claims. A genuine notice should be traceable to the India Semiconductor Mission, MeitY, the Press Information Bureau or another named government agency. It should identify the exact component, eligible applicant, authority, submission method and deadline. A social-media graphic carrying only the ₹1.27 lakh crore figure is not an application notification.

Before sharing corporate or technical documents, check the web address and find the same announcement through the official portal’s own navigation. Project promoters should retain the applicable guideline and any corrigendum used for submission because scheme terms can evolve. Where a state incentive is involved, verify it separately on the state investment agency’s official website. This source discipline also prevents confusion between Semicon India, individual fabrication incentives, design-linked support and unrelated private investment offers.

Authenticity checkReliable signal
Publishing authorityISM, MeitY, PIB or another clearly identified government body
Scheme identityExact pillar or component rather than a vague reference to the whole programme
Application termsEligible applicant, documents, incentive and submission route are stated
DeadlineAppears in the component’s current notice, not an aggregator headline
ChangesCorrigenda and extensions can be matched to the original official notice

India Semiconductor Mission scheme implementation status

Semicon 2.0 is a programme umbrella. Its Cabinet-approved scope must be translated into component guidelines, project approvals and milestone-based implementation. That distinction explains why the official sources can confirm the full outlay while still showing no single closing date for every type of proposal. A fabrication facility and a research call cannot reasonably use identical appraisal documents or timelines.

Companies should watch for a notice that names their component and then read the current guideline in full. Earlier India Semiconductor Mission schemes remain useful context, but a previous form or incentive percentage should not be assumed to apply unchanged to Programme 2.0. The authoritative position is the latest notice associated with the specific project category. If an application portal displays a scheme name that does not match the proposed activity, the proponent should resolve that mismatch before uploading confidential business information.

Implementation layerWhat it establishes
Cabinet approvalThe national policy direction and ₹1,27,500 crore programme envelope
Component guidelineEligible applicants, costs, incentive conditions and evaluation method
Application windowThe submission period for a named scheme or call for proposals
Project approvalGovernment acceptance of a particular proposal subject to conditions
Milestone disbursementRelease of support against verified progress and compliance

The programme also has a wider economic purpose: reduce vulnerable import dependencies, deepen domestic value addition and connect Indian design capability with manufacturing and packaging. Success therefore depends on coordination across ministries, states, companies, universities and training institutions. The 12 earlier approved projects and 105 chip-design startups are a base, not the final target. New notices should be read in that ecosystem context while remaining precise about which applicant, incentive and deadline they actually govern.

ResourceDirect link
Cabinet approval releaseOfficial PIB announcement
Semicon 2.0 fact sheet PDFDownload official programme fact sheet
India Semiconductor MissionOfficial ISM portal
ISM registration portalOpen project registration
Ministry of Electronics and ITMeitY official website
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Frequently Asked Questions

When was Semicon 2.0 approved?

The Union Cabinet approved it on 15 July 2026.

What is the outlay?

The total programme outlay is approximately ₹1,27,500 crore.

How many pillars are there?

There are six pillars covering design, inputs, fabs, packaging, R&D and talent.

Is there one public application form?

No single form covers every pillar and applicant type.

Is there a universal deadline?

No programme-wide last date was announced as of 20 August 2026.

Where should companies check?

Use the India Semiconductor Mission portal and the current component guideline.

Can individuals claim the full incentive?

No. Support is tied to eligible projects and notified components.

Does it include chip design?

Yes. Semiconductor design is one of the six pillars.

Does it cover packaging?

Yes. Advanced packaging is a distinct pillar.

Where is the official PDF?

The PIB fact sheet PDF is linked in Important Links.

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