Semicon 2.0: Rs 1.27 Lakh Crore Programme May Catalyse Rs 5 Lakh Crore Investment, Says IESA

The electronic system design and manufacturing (ESDM) industry has welcomed the government’s notification of the Rs 1.27 lakh crore Semicon 2.0 programme.

The initiative could catalyse more than Rs 5 lakh crore in cumulative investment over the next five to seven years.

The India Electronics and Semiconductor Association (IESA) said the programme builds on the Semicon India Programme. It adopts an end-to-end strategy covering six pillars across the semiconductor value chain.

IESA President Ashok Chandak called the notification a major milestone. He further said the swift transition from Cabinet approval to formal notification demonstrates policy continuity and effective execution.

Chandak stressed that policy stability remains vital for an industry where companies plan investments over 10-15 years. He further said the move could strengthen confidence among domestic and global investors.

IESA said the first phase strengthened ecosystem confidence through 12 approved projects.

At the same time, the programme supported more than 100 design startups and expanded access to electronic design automation tools across educational institutions.

Semicon 2.0 covers chip design, fabrication, assembly, testing, packaging, equipment, materials, research, development and workforce training.

The association, however, welcomed plans to identify strategically important semiconductor products through a high-level committee.

The Principal Scientific Adviser and National Security Adviser will jointly chair the panel.

The committee will play a key role in identifying products considered strategically important for the sector.

IESA, meanwhile, expects the programme to drive investments across fabrication, ATMP and OSAT facilities, equipment, materials, R&D, chip design and supply-chain activities.

Importantly, the body said government fiscal support should act as a catalyst for larger private investment.

As a result, semiconductor projects could generate demand for equipment, materials, speciality chemicals, packaging, logistics and skilled talent.

IESA said Semicon 2.0, alongside ECMS, MPMS and EMC, could help build an integrated ecosystem. In turn, this could increase domestic value addition and advance technology development.

Finally, the association congratulated Union Minister Ashwini Vaishnaw, MeitY Secretary S. Krishnan, India Semiconductor Mission CEO Amitesh Kumar Sinha and the wider MeitY-ISM team.

Earlier on Monday, the government notified Semicon 2.0 to bolster semiconductor design, fabrication, packaging, testing, equipment manufacturing, research and talent development.

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