India currently hosts 12 semiconductor manufacturing units with a combined investment of $20 billion, according to Union Minister Ashwini Vaishnaw. The government’s Semicon 2.0 initiative aims to drive the next phase of growth in the semiconductor sector, focusing on expanding production capabilities and attracting further investments.
Vaishnaw outlined that the initial phase of semiconductor manufacturing in India has laid the groundwork for the industry, and Semicon 2.0 will build on this foundation. The program is designed to create a robust ecosystem by supporting fabrication units, design houses, and allied industries. The minister emphasized the importance of policy support and infrastructure development to boost domestic manufacturing and reduce reliance on imports, as reported by economictimes.indiatimes.com.
The semiconductor sector is critical for India’s ambitions in technology and electronics manufacturing, especially amid global supply chain disruptions. The $20 billion investment marks a significant step compared to earlier phases and aligns with the government’s broader push to enhance self-reliance in strategic industries. This move also complements India’s growing data centre capacity, which Axis Capital projects could reach 3 to 3.6 gigawatts by 2030, driven by hyperscalers expanding their footprint in the country.
The government’s focus on Semicon 2.0 is expected to accelerate semiconductor production and innovation in India. The next major milestone will be tracking the progress of these 12 units and any new projects announced under the scheme, which will be critical to meeting the country’s technology manufacturing goals.