The Indian government has cleared one of its largest technology‑sector investments to date, approving ₹1.28 trillion to accelerate the country’s semiconductor ecosystem and an additional ₹625 billion to boost mobile phone manufacturing. The decision was announced by Union Information Minister Ashwini Vaishnaw after a Cabinet meeting chaired by Prime Minister Narendra Modi.
Vaishnaw confirmed that the expanded programme — branded Semicon 2.0 — aims to transform India into a global hub for chip design, fabrication and advanced electronics manufacturing. He said the fresh capital infusion reflects India’s long‑term commitment to building a resilient semiconductor supply chain amid rising global demand and geopolitical competition.
Semicon 2.0 will be built on six strategic pillars:
- Chip design
- Machines and materials
- New semiconductor fabs
- Strengthening ATMP/OSAT ecosystem
- Research and development
- Talent development
The programme includes incentives for fabrication plants, advanced packaging units, and domestic design companies, along with partnerships for critical machinery and materials. The government believes this will help India reduce dependence on foreign suppliers and position itself competitively against manufacturing economies like Taiwan, South Korea and the US.
The ₹625‑billion outlay for mobile phone manufacturing is expected to strengthen India’s position as a global smartphone production centre, building on the success of the Production‑Linked Incentive (PLI) scheme. Officials say the new funding will support next‑generation devices, supply‑chain localisation and export‑oriented manufacturing.
Prime Minister Modi hailed the approval, saying India’s semiconductor journey has become “more vibrant” with Semicon 2.0 and will be powered by the country’s youth and engineering talent.