India has approved 12 semiconductor manufacturing units with a combined investment commitment of around Rs 1.6 lakh crore, Union Electronics and Information Technology Minister Ashwini Vaishnaw said.
According to the minister, the country's semiconductor programme has moved from the policy stage to execution, with approved projects progressing towards production. He said three semiconductor facilities are already operational, marking a significant step in developing domestic chip manufacturing capabilities.
Vaishnaw said the government is preparing to launch the next phase of the programme through Semicon 2.0, which aims to build a comprehensive semiconductor ecosystem beyond manufacturing.
The initiative will focus on chip design, semiconductor equipment and materials, fabrication facilities, assembly, testing, marking and packaging (ATMP/OSAT), research and development, and workforce development.
The Union Cabinet has approved Semicon 2.0 with an outlay of Rs 1.27 lakh crore to strengthen India's semiconductor design and manufacturing capabilities, reduce dependence on imports and support domestic supply chains.
Vaishnaw said the government's strategy was shaped by lessons from earlier unsuccessful attempts to establish semiconductor manufacturing in India. He referred to a proposed $3 billion investment by AMD in 2005 that did not materialise because of policy and execution challenges.
He said the current approach, adopted after 2022, focuses on policy stability, financial support and faster implementation to attract both domestic and global investment.
According to the minister, the expanding semiconductor ecosystem is expected to support industries including smartphones, automobiles, telecommunications, defence and artificial intelligence, while strengthening India's position in the global semiconductor supply chain.