Science & Tech
India Projects 200 Chip Design Firms Under Rs 1.27 Lakh Crore Semicon 2.0 Push
The scheme broadens India’s semiconductor base beyond subsidies into design and materials
The scheme broadens India’s semiconductor base beyond subsidies into design and materials
India’s semiconductor push is shifting from subsidies on paper to a real , with meant to build domestic chip capability across design, packaging, materials, and talent. The government’s projection of about 200 design firms points to a larger test: whether incentives, , and industry partnerships can create durable and enough supporting capacity to scale.
On the same day, official and media coverage said global companies were exploring partnerships and expanding work in India as the matured. The government also pointed to work on local production of and minerals, showing that support was moving beyond design into inputs and equipment. Officials further highlighted water recycling in and in data centers, underscoring the infrastructure demands of scaling chip activity.
The government projected that around 200 could emerge under Semicon 2.0, calling the expected pipeline a major turning point for India. Officials also linked the target to a wider goal of building semiconductor workers, from technicians to and factory personnel. The estimate suggested the state sees Semicon 2.0 as a company-creation engine, not only a subsidy program.
By mid-September, coverage of described the design push as gaining pace, with large numbers of students trained and under the earlier program. The reporting said the government was trying to convert that momentum into a broader industrial base under . It also framed the shift as a move from isolated design wins toward a deeper with talent, suppliers, and commercial follow-through.
The design guidelines required eligible companies to be incorporated and headquartered in India, with meaningful local operations and manpower presence. For commercial chip design, companies had to be , and IP and were required to remain in India. These rules were aimed at keeping more of the value chain, and more of the strategic know-how, inside the country.
Reports on the notification said startups and MSMEs could receive of up to Rs 15 crore, or 50 percent of project cost, whichever was lower. Larger companies could seek tied to product revenue, giving the scheme a mechanism for both early-stage and commercial design firms. The structure showed that the government wanted to finance not just factory buildout, but a sustainable design pipeline.
The government notified Semicon 2.0, making the Rs 1.27 lakh crore scheme operational and spelling out support across the . The covered chip design, fabrication, packaging, and related ecosystem segments, while also defining the incentive structure for manufacturing and design applicants. This moved the program from cabinet approval to implementation, which is when private companies could begin responding at scale.
At the launch, officials said 24 semiconductor design projects had already been approved for financial support under the broader program. They also said 105 startups and MSMEs had been given access to industry-standard to build chips for AI systems, telecom, drones, satellite communications, , and . That early pipeline suggested the ecosystem had started moving from policy design to concrete engineering work.
The government said Semicon 2.0 would give ch design startups and of up to Rs 15 crore, with larger firms able to access other support models. The policy also set strict local presence and ownersh conditions for eligible , signaling a push to build Indian-controlled and engineering capacity. This was the clearest sign that design was no longer a side note, but the core of the next semiconductor phase.
India approved with an of Rs 1,27,500 crore, marking the next phase of its semiconductor push. The scheme broadened the focus beyond to chip design, equipment, materials, , research, and talent. Officials said the program was meant to turn India’s chip strategy from policy intent into an ecosystem built across the full value chain.