NEW DELHI: India is in the final stages of preparing Semicon 2.0, the next phase of its semiconductor mission, with govt set to broaden incentives beyond chip fabrication to support the country’s wider semiconductor ecosystem.Speaking during an online session hosted by the India Semiconductor Mission (ISM) on Monday, ISM CEO Amitesh Kumar Sinha said the policy is being finalised and will be announced soon. He said the revised programme will “broaden the eligibility criteria and improve the incentive structure” for semiconductor design startups.Semicon 2.0 will expand support beyond fabs to include chip design startups as well as suppliers of semiconductor-grade chemicals, gases, materials and manufacturing equipment, reflecting govt’s push to build a complete domestic chip ecosystem rather than focusing only on manufacturing facilities.Unlike the first phase, which focused primarily on attracting fabrication and packaging investments, Semicon 2.0 aims to strengthen every layer of the chip value chain. Govt plans to extend support to suppliers of semiconductor-grade chemicals, gases, materials and manufacturing equipment, alongside scaling talent development initiatives and indigenous research in critical semiconductor technologies.Sinha said localising the supply chain is essential for India’s semiconductor ambitions. A modern fabrication plant requires between 200 and 250 specialised chemicals, gases and materials, most of which are currently imported.“We want the ecosystem to come to India, not just the fabs,” he said, stressing that developing domestic suppliers would improve resilience and reduce import dependence. The first phase of the India Semiconductor Mission has approved 12 projects spanning chip design, fabrication and packaging. Three facilities – Micron’s assembly and test plant, CG Power and Renesas’ OSAT facility, and Kaynes Semicon’s packaging unit – have commenced production.
