Government notifies Rs 1.27 lakh crore Semicon 2.0 scheme to boost chip ecosystem

The government has notified the Semicon 2.0 scheme with an outlay of Rs 1.27 lakh crore to boost the chip manufacturing ecosystem in the country.

The scheme has been divided into six segments covering designing of chips by Indian firms, setting up units for capital equipment required for chip production, semiconductor fabs, chip assembly, packaging and testing, etc.

"The government has decided to provide ... sustained policy support to the semiconductor sector in India by notifying the Semicon 2.0 Scheme for the development of semiconductor design and manufacturing ecosystem in India.


"Semicon 2.0 provides fiscal support to various verticals across the complete value chain of the semiconductor industry, ranging from chip design, fabrication and packaging to various segments of the semiconductor ecosystem," the notification said.

The scheme will aim to build resilient, trusted, and sovereign semiconductor technologies by focusing on designing, development, and deployment of target segment technologies for the national strategic and critical infrastructure.

It will target local development of semiconductor Intellectual Property (IP) cores, Chips, System-on-Chips (SoCs), and modules for electronic products, as may be identified from time to time based on national importance and strategic priorities.

"To achieve this, building blocks will be developed, including standard IPs for various types of Compute, Memory, RF, Power, Networking, Sensors, etc.," the notification said.