India to expand semiconductor development with Semicon 2.0

• Government continues to evaluate numerous proposals for semiconductor units across various states, including Uttar Pradesh.

Ashwini Vaishnaw, India’s Minister for Electronics and Information Technology, said on the sidelines of Semicon India 2024 that the soon to be launched Semicon 2.0 programme would expand upon the framework established by its predecessor, Semicon 1.0.

Notably, the first phase of the Semicon 1.0 programme, initiated on December 21, 2021, with a budget allocation of Rs76,000 crore, is nearing completion.

The foundational work has laid the groundwork for a more comprehensive approach to semiconductor development across the country.

Semicon 2.0 is poised to encompass the entire semiconductor value chain, a strategic move that underscores the government’s commitment to fostering an integrated ecosystem that attracts global industry leaders.

As Vaishnaw highlighted, the enthusiastic reception of India’s semiconductor initiatives by international stakeholders signifies the nation’s burgeoning prominence in this critical sector.

Addressing the needs

The government’s proactive measures have already resulted in the approval and ongoing construction of five semiconductor units, emphasising a robust momentum that is crucial for establishing India as a global semiconductor hub.

A salient feature of the government’s strategy is the upgrade plan for the semiconductor lab in Mohali, which is expected to advance significantly once submitted to the Cabinet.

Additionally, the rapid development of Micron’s high-end semiconductor fabrication plant in Sanand, Gujarat—the first of its kind in India—illustrates the potential for transformative growth in this sector. With operations anticipated to commence in late 2024, this facility will serve as a cornerstone in the nation’s semiconductor production capabilities.

As the government continues to evaluate numerous proposals for semiconductor units across various states, including Uttar Pradesh, the importance of a diversified and resilient semiconductor supply chain becomes increasingly evident.

The cumulative investments exceeding Rs1.5 trillion reflect not only market confidence but also the strategic foresight of the Indian government in addressing global semiconductor demands.