Context: The Ministry of Electronics and Information Technology (MeitY) notified the operational framework for the ₹1.27 lakh crore (₹1,27,500 crore) Semicon 2.0 programme.
About Semicon 2.0:
What It Is?
- Semicon 2.0 (India Semiconductor Mission 2.0) is a comprehensive national policy framework and financial incentive scheme structured across 6 pillars and 10 categories.
- It is designed to support the entire semiconductor value chain—encompassing fabless chip design, silicon and compound wafer fabrication, advanced packaging (ATMP/OSAT), equipment, materials, specialty chemicals, R&D, and specialized talent development.
Nodal Organisations Involved
- Nodal Agency: India Semiconductor Mission (ISM) under the Ministry of Electronics and Information Technology (MeitY).
- Design & Technical Partner: Centre for Development of Advanced Computing (C-DAC).
Aim: To build technological self-reliance by promoting Indian-owned IP, fabless chip design, domestic chip adoption, local semiconductor supply chains, and global electronics manufacturing.
Key Features of Semicon 2.0:
- Strategic & Commercial Chip-Design Tracks:
- Strategic Track: C-DAC funds and co-owns IPs/SoCs critical for national security, defense, compute, memory, RF, and sensors.
- Commercial Track: Provides EDA tool access, multi-project wafer (MPW) services, milestone-linked seed funding (up to ₹15 crore or 50% project cost) for startups/MSMEs, and royalty financing for larger firms, while opening eligibility to OCI-owned enterprises incorporated in India.
- Deployment-Linked Incentive (DLI): Offers a direct reimbursement of 9% on net sales for 5 years (capped at ₹30 crore per application and ₹120 crore per company) on newly launched Indian IP cores, chips, and SoCs to help startups overcome commercial adoption hurdles.
- Calibrated Capex Support for Fabs & Packaging:
- Provides 40% fiscal support for large 300-mm silicon wafer fabs (minimum ₹20,000 crore investment).
- Provides 35% fiscal support for compound semiconductor, photonics, MEMS, sensor, and display fabs.
- Grants 35% support for advanced 2.5D/3D packaging and 25% for legacy ATMP/OSAT units.
- Supply Chain Localization (Materials & Machines): Extends 30% capex support for plants manufacturing wafers, photomasks, photoresists, substrates, specialty gases, and equipment, alongside a tapering 10% to 2% PLI over 5 years on domestically sourced bills of materials.
- Targeted Talent & R&D Development: Backs advanced semiconductor R&D and clean-room training infrastructure with up to 75% project cost support, setting an expanded target to train 1,00,000 additional semiconductor engineers across universities and tier-II/III technical colleges.
