India Launches Semicon 2.0 With Rs 1.28 Trillion Budget for Second Chip Fab
· Business · LiveMint, Gadgets360
India has launched the Semicon 2.0 initiative with a budget of ₹1.28 trillion to establish a second commercial silicon fabrication plant by 2031 alongside its first display fab. New Delhi is offering up to 40% in cash incentives for facilities operating on standard 12-inch wafers while tightening eligibility criteria to target established manufacturers capable of deploying at least ₹20,000 crore ($2.1 billion) in private capital. Applicants must possess production-grade licensed technology and report annual revenues of at least ₹7,500 crore by fiscal 2026 to qualify for the silicon plant. The updated framework also introduces joint equity investments to support domestic chip-design startups without an initial upper funding cap. IT minister Ashwini Vaishnaw stated that the policy prioritizes project quality and supply chain security over sheer production volume.
Why it matters
Domestic semiconductor manufacturing expands beyond the initial Tata joint venture in Gujarat, strengthening India's domestic supply chain and reducing reliance on foreign chip imports.
Read the original report — LiveMint
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