Chip manufacturing – Artifex.News

Govt notifies ₹1,27,500-crore Semicon 2.0; spells out eligibility norms, sops for chip ecosystem

admin — Mon, 31 Aug 2026 09:52:00 +0000

IT Secretary S. Krishnan. File
| Photo Credit: Sushil Kumar Verma

The government on Monday (August 31, 2026) notified the Semicon 2.0 scheme, setting in motion the ₹1,27,500-crore plan that seeks to deepen India’s semiconductor ambitions — from chip manufacturing to a full-stack ecosystem encompassing indigenous design and IP, equipment, materials, advanced packaging, R&D and talent development.

The move comes at a time when semiconductors have emerged as a critical strategic resource globally, with the AI boom driving unprecedented demand for advanced chips and memory. At the same time, growing concerns over supply-chain vulnerabilities and shifting geopolitics have pushed global players to expand semiconductor capacities and reduce dependence on concentrated production hubs.

The Semicon 2.0 scheme was approved by the Union Cabinet on July 15, 2026. The notification on Monday (August 31, 2026) spells out the contours of the new programme detailing how the ₹1,27,500-crore outlay will be implemented, and how incentives will be structured, and the eligibility criteria for various categories.

“Now the time is ripe to move to next stage to develop semiconducor ecosystem through Semicon 2.0. The objective of the scheme is self reliance and fostering a globally competitive industry,” IT Secretary S. Krishnan said at a briefing.

For design of chips for commercial sector, the eligibility will be startups, and companies owned by Indian citizens or OCI.

For startups, financial support will be in the form of grant and equity co-investment, and for companies it would be in the form of royalty financing or equity co-investment.

When it comes to setting up more fabs, the new scheme will provide 40% fiscal support for silicon fabs and 35% for compound, display (LCD, OLED, micro LED), and other specialised fabs.

For strengthening ATMP/OSAT, (Assembly, Testing, Marking and Packaging/Outsourced Semiconductor Assembly and Test), it supports advanced and legacy packaging with an incentive of 35% of capex for advanced packaging and 25% of capex for conventional packaging.

Previously, under the first phase of the programme, the government had approved 12 semiconductor projects across six states, with three facilities — Micron’s ATMP plant, Kaynes Semicon and CG Semi OSAT facility — having commenced commercial production earlier this year.

Published – August 31, 2026 03:22 pm IST

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Our made-in-India chip will be ready in 2.5 years: Vedanta chairman on semiconductor plan

admin — Fri, 28 Jul 2023 11:41:38 +0000

Anil Agarwal, Chairman of Vedanta Resources Ltd, addresses the audience during the ‘SemiconIndia 2023’, India’s annual semiconductor conference, in Gandhinagar, India, July 28, 2023.
| Photo Credit: Reuters

Vedanta group chairman Anil Agarwal on July 28 said that first phase of its semiconductor project will involve $5 billion investment of the overall $20-billion outlay, and the venture will be ready with made-in-India chip in two and a half years.

Vedanta is talking to three companies to rope them in as technology partners for its mega plans entailing foundary, chip manufacturing, and packaging and design.

“In 2.5 years, we will give you Vedanta made-in-India chips,” Mr. Agarwal told reporters on the sidelines of SemiconIndia 2023 event.

The first phase of its semiconductor investment will be to the tune of $5 billion, which is being structured.

Also read | India’s semiconductor market to reach $55 billion by 2026: Deloitte

“Vendata has a good cash flow, we will make a capital allocation in Vedanta and there is queue of people to give us equity and debt…but we want the tie-ups to be in place first, and have ecosystem,” he said.

After parting ways with Foxconn on their semiconductor joint venture, Vedanta group has made it clear that it remains committed to building India’s first semiconductor and display fabs in Dholera Special Investment Region in Gujarat, and substantial progress has happened to tie up with technology and equity partners in semiconductors.

Both Foxconn and Vedanta have now decided to apply for India chip-making incentives separately.

Foxconn has said it is working on plans to apply for incentives under semiconductor and display fab programme, as the contract manufacturer pledged its commitment to India.

The Taiwanese electronics manufacturing giant said it has been actively reviewing landscape for optimal partners.

India is wooing semiconductor and display manufacturers with a $10-billion incentive scheme, making a determined push to position itself as a global powerhouse for chip making.

Sophisticated chips are part of everyday life, used in mobile phones to refrigerators and cars to high-tech industries, and so fostering local industry with carefully-crafted schemes and policy sweeteners will link India to an ever-growing global chip market.

As it is, the global semiconductor shortage has emphasised the importance of this critical component in modern-day electronics.

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