Semicon 2.0: India's Next Phase for Chip Sovereignty
Economy · Wednesday, 2 September 2026
The Semicon 2.0 program is aimed at expanding India's domestic semiconductor ecosystem beyond the initial 1.0 phase. It focuses on large-scale fabrication, design centers, and talent development to secure global electronics supply chains.
Quick highlights
- Targets building indigenous commercial-grade fabrication units (Fabs).
- Focus on the Design-Linked Incentive (DLI) scheme for domestic startups.
- Aims to reduce dependence on East Asian supply chains for critical chips.
- Positions India in the global 'Chip 4' ecosystem discourse.
- Increases investment caps and incentives for high-end packaging units (ATMP).
Significance
Semicon 2.0 is critical for 'Aatmanirbhar Bharat' in electronics. By attracting global giants and fostering local talent, India intends to capture 10% of the global semiconductor value chain by 2030.
Exam Angle
GS Paper III: Economy and Technology. Key for questions on global supply chains and the Digital India mission.
Remember this
- ISM: India Semiconductor Mission.
- DLI: Design Linked Incentive.
- ATMP: Assembly, Testing, Marking and Packaging.
- Target: Chip Sovereignty and supply chain resilience.
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