Second Phase of India Semiconductor Mission to Roll Out in 3–4 Months
Building on the success of the first phase, the government will launch Semicon India 2.0 within the next three to four months, with a broader focus on integrating component manufacturers, raw material suppliers, and the entire semiconductor ecosystem.
Electronics and IT Minister Ashwini Vaishnaw, speaking at the Semicon India 2024 event, said the new phase will be a “much-expanded” version of the first. “We will work towards bringing the entire ecosystem under one umbrella,” he noted. The minister also confirmed that Uttar Pradesh will soon host semiconductor manufacturing units, joining Gujarat and Assam.
Launched in December 2021 with a ₹76,000 crore production-linked incentive (PLI) outlay, the India Semiconductor Mission has already approved key projects, including:
- A chip fabrication plant in Dholera, Gujarat
- Four chip packaging units — three in Sanand, Gujarat, and one in Morigaon, Assam
The total investment in these projects has reached ₹1.5 lakh crore.
In Semicon 2.0, the government will prioritise raw material availability. UP CM Yogi Adityanath announced that the state is offering land and capital subsidies of around 25% of total costs, with 1,000 acres in the Yamuna Authority reserved for the sector.
The Semicon India 2024 exhibition featured nearly 250 exhibitors, including 140+ international participants, and saw major investment commitments:
- Larsen & Toubro Ltd: Over $300 million to establish a chip company
- NXP Semiconductors: Over $1 billion to double India R&D operations
- Renesas Electronics: Partnership with CG Power for an assembly & test plant, with plans to double workforce in India by next year
Industry leaders stressed the sector’s transformative potential. Tata Electronics MD Randhir Thakur said the industry could help achieve “Viksit Bharat” by 2047, creating 50,000 direct jobs with significant multiplier effects. SEMI President Ajit Manocha projected India as Asia’s next semiconductor hub, noting that 150 new fabs will be needed globally to meet the $1 trillion market target by 2030, fueled by AI-driven demand.
