The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Semicon 2.0 with a budgetary outlay of Rs 1,27,500 crore to accelerate the development of India's semiconductor design and manufacturing ecosystem and provide long-term policy support to the sector.

The programme is built around six strategic pillars—strengthening semiconductor design capabilities, promoting manufacturing of semiconductor equipment and materials, attracting new fabrication (fab) units, expanding the ATMP/OSAT ecosystem, advancing research and development, and developing a skilled talent pool. The initiative aims to enhance India's technological capabilities, strengthen supply chain resilience, and position the country as a global semiconductor hub.

The government also highlighted the progress under Semicon 1.0, under which 12 manufacturing projects with investments exceeding Rs 1.64 lakh crore have been approved. Three companies—Micron, Kaynes, and CG Semi—have already commenced commercial production, while support has also been extended to semiconductor startups and MSMEs through funding and access to advanced chip design tools.