Govt Rolls Out ₹1.27 Trillion Semicon 2.0 Scheme Covering Six Chip Segments

The government has notified the Semicon 2.0 scheme with an outlay of ₹1.27 trillion to support the development of the semiconductor industry in India, as The Economic Times news report.  

The scheme provides fiscal support for activities across the chip design and manufacturing chain. The notification states that the government will continue policy support for the sector through the programme, which covers several parts of the semiconductor ecosystem. 

Six Segments Under the Programme 

Semicon 2.0 has been divided into six segments. These include chip design by Indian companies, facilities for manufacturing capital equipment used in chip production, semiconductor fabrication units, and chip assembly, packaging and testing. 

The scheme therefore covers both the production of semiconductors and activities connected with the equipment and processes required to make them. 

Support From Design to Packaging 

Fiscal support under the scheme will be available across different stages of the semiconductor value chain. These range from the design of chips and semiconductor fabrication to packaging and other related areas. 

The notification places the various segments under the Semicon 2.0 framework as part of the government's approach towards developing semiconductor design and manufacturing capabilities in the country. 

Focus on Strategic Requirements 

The scheme also covers technologies linked to national strategic priorities and critical infrastructure. It aims to support the design, development, and deployment of semiconductor technologies identified for these requirements. 

The government has said the programme will focus on building resilient, trusted and sovereign semiconductor technologies for areas considered strategically important. 

Domestic Development of Chip Technologies 

Another part of the scheme relates to the development of semiconductor Intellectual Property (IP) cores, chips, System-on-Chips (SoCs) and modules used in electronic products. 

Products and technologies for support may be identified from time to time, based on national importance and strategic priorities, according to the notification. 

Standard IP Building Blocks 

The programme also provides for the development of standard IP building blocks for different semiconductor applications. These include Compute, Memory, RF, Power, Networking and Sensors. 

Such building blocks are intended to support the development of semiconductor products and related electronic technologies within the wider ecosystem. 

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Conclusion 

With an outlay of ₹1.27 trillion, Semicon 2.0 covers six areas of the semiconductor sector, spanning chip design, manufacturing equipment, fabrication, assembly, packaging and testing, along with the development of domestic semiconductor technologies and IP. 

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