Semicon 2.0 to Deepen India’s Semiconductor Ecosystem With Focus on Design, Equipment, Fabs, Advanced Packaging, R&D and Talent

Key Highlights:

• Union Minister Shri Ashwini Vaishnaw outlined the implementation approach for Semicon 2.0 at SEMICON India 2026.
• Semicon 2.0 aims to deepen India's semiconductor ecosystem, focusing on design, equipment, fabs, advanced packaging, R&D, and talent.
• Investment commitments of ₹1 lakh crore (USD 11-12 billion) are expected, projected to create 1 lakh new employment opportunities.
• The initiative targets supporting 200 semiconductor design start-ups and training 1 lakh technicians over five years.
• The objective is to build a complete ecosystem around semiconductor manufacturing, not just individual facilities.

Detailed Insights:

• Semicon 1.0 focused on laying the foundation, while Semicon 2.0 scales capabilities across the entire semiconductor value chain.
• Six pillars guide Semicon 2.0: design ecosystem, machines and materials, fabs, advanced packaging, R&D, and talent development.
• The design ecosystem supports scaling fabless companies, funding access, and stronger Intellectual Property protection, moving towards systems design.
• The machines and materials pillar attracts global capital equipment companies for design and manufacturing operations in India.
• Semiconductor Fabrication (Fabs) expansion covers display, memory, silicon, compound, and logic technologies.
• Advanced packaging capabilities are crucial for improving efficiency and system-level performance of chips.
• R&D promotes applied technologies through collaboration among industry, government, and academia.
• Talent development involves upgrading curriculum in 400 universities and training technicians with international partners like ITRI, Taiwan.
• The initiative emphasizes developing domestic capabilities in capital equipment, materials, and supply chains for a resilient ecosystem.
• India Semiconductor Mission and Intel India launched an 'Introduction to Semiconductors' course.
• Six ChipIN Regional Centres were announced to expand access to chip-design capabilities across the country.

Key Concepts Involved:

• Semiconductor Ecosystem: The entire network of design, manufacturing, supply chain, R&D, and talent supporting semiconductor production.
• Fabless Company: A company that designs and markets hardware devices but outsources the manufacturing to a specialized semiconductor foundry.
• Semiconductor Fabrication (Fab): A facility where integrated circuits (chips) are manufactured.
• Advanced Packaging: Techniques that enhance chip performance, power efficiency, and form factor by integrating multiple components in a single package.