India's Ambitious Semicon 2.0 Scheme Attracts $11-12 Billion in Investment Commitments

Significant Investment in Semiconductor Ecosystem

New Delhi: IT Minister Ashwini Vaishnaw announced on Thursday that the government anticipates investment commitments ranging from USD 11 to 12 billion under the newly introduced Semicon 2.0 initiative.

This investment interest encompasses a broad spectrum of the semiconductor industry, including sectors such as equipment, materials, gases, chemicals, assembly, testing, marking, and packaging (ATMP) units, as well as substrates and wafers, the minister explained during a briefing at the SEMICON India 2026 event.

Vaishnaw stated, "The investment commitment figures we are observing today are approximately 11 to 12 billion dollars under Semicon 2.0."

While he refrained from naming specific companies, he indicated that these entities are likely to make announcements following the approval from their respective boards and shareholders.

The minister emphasized that the investment pipeline provides the government with a clear perspective on the future investment trajectory under this ambitious second phase of India's semiconductor program.

Furthermore, Vaishnaw noted that Semicon 2.0 could potentially create around 100,000 new jobs within the semiconductor ecosystem, with the possibility of even greater employment opportunities.

This surge in investment interest follows the government's recent notification of the second phase of its semiconductor program, which aims to enhance India's role in the global chip value chain.

In July, the Union Cabinet approved Semicon 2.0 with a budget of Rs 1,27,500 crore. The program is built on six foundational pillars, including chip design, machines and materials, semiconductor fabs, ATMP/OSAT, research and development, and talent development.

The second phase aims to expand upon the initial Semicon India program, which has already approved 12 semiconductor projects, three of which have commenced commercial production.

This renewed investment interest aligns with India's goal to strengthen its semiconductor manufacturing capabilities beyond just chip packaging and to establish a more comprehensive domestic supply chain that includes materials, equipment, design, and fabrication.