India has begun preparing for its next major leap in semiconductor manufacturing, with the government setting a target of developing advanced chip technology in the 7-nanometre to 3-nanometre range over the next eight years. Outlining the roadmap for what's being called Semicon 2.0, Electronics and Information Technology Minister Ashwini Vaishnaw made clear this next phase goes well beyond chip fabrication and packaging alone, extending into chip design, manufacturing equipment, specialised materials, advanced packaging, research, and talent development.
Where India Stands Today
India currently operates at 40-nanometre semiconductor technology. The government's plan is to progressively push toward more advanced process nodes while simultaneously building the technical capability and skilled workforce needed to support that transition. As part of this, the government aims to train one lakh semiconductor design engineers over the coming years, with the broader goal of positioning India as a major global hub for chip design.
What Semicon 2.0 Actually Covers
Chip design sits at the core of this next phase, with the programme focusing on six major areas: computing, memory, radio frequency, power, networking, and sensors. The government also intends to encourage domestic manufacturing of semiconductor production equipment itself, aiming to reduce import dependence and build a wider industrial ecosystem capable of supporting chip manufacturing entirely within the country.
Materials are getting significant attention too. According to Vaishnaw, chip manufacturing can require anywhere between 150 and 500 specialised chemicals, gases, and other inputs. Building domestic production capability for these materials is seen as critical to strengthening India's semiconductor supply chain and reducing exposure to external dependencies.
Progress So Far Under Semicon India
Under the first phase of the Semicon India Programme, 12 semiconductor units have been approved over the past five years, representing cumulative investment of around ₹1.77 lakh crore. Three facilities have already moved into commercial production: Micron began on February 28, 2026, followed by Kaynes on March 31, and CG Power on July 4, with construction continuing at the remaining approved sites.
The Semicon India Programme itself launched in 2021 with an initial outlay of roughly ₹88,700 crore, focused primarily on establishing fabrication and packaging facilities. Semicon 2.0 now aims to build out the broader ecosystem, strengthening fabrication, chip design, materials, equipment, packaging, and research capabilities all at once, rather than treating them as separate tracks.
Global interest has grown alongside this domestic push too: the government says international companies are investing more than ₹26,600 crore in India outside the Semicon India Programme itself, with India's rapidly expanding electronics manufacturing sector expected to provide a strong domestic demand base for locally produced semiconductors.
Building the Talent Pipeline
India has also been steadily building its chip-design capabilities on the education side. Under the Chips to Startup Programme, Electronic Design Automation tools have been made available to more than 320 universities and startups, resources Indian students have used to develop 40 chip designs, presented to Prime Minister Narendra Modi during the previous Semicon India event.
Workforce expansion remains a central pillar of the strategy. The government had originally targeted 85,000 trained semiconductor engineers over 10 years; under Semicon 2.0, that target has been raised to one lakh design engineers. According to Vaishnaw, India-based engineers are already contributing to advanced chip designs at the 2-nanometre and 3-nanometre level for global semiconductor companies, a notable indicator that domestic talent is already operating at the cutting edge, even before India's own manufacturing catches up.
Startup Funding Support Is Also Paying Off
The government has also been backing semiconductor startups through its Design Linked Incentive (DLI) scheme. A total of 105 startups have received support under the programme so far, with 24 receiving direct financial assistance totalling around ₹7,362 crore. Notably, 15 of these startups went on to raise around ₹10,515 crore in venture capital funding on their own, a strong signal that government-backed startup funding early on is helping build genuine investor confidence in India's semiconductor design ecosystem, rather than simply subsidising activity that wouldn't otherwise attract private capital.
A Strong Electronics Base to Build On
This entire semiconductor push is being supported by rapid growth in India's broader electronics manufacturing sector. Electronics production in the country has crossed ₹11.5 lakh crore, while electronics exports have exceeded ₹4.26 lakh crore. More than 300 electronics manufacturing units are currently operating in India, supporting around 25 lakh jobs, and mobile phones have emerged as the country's largest single export item.
The Road Ahead Won't Be Easy
Reaching 3-nanometre technology is a genuinely significant technical challenge. Leading global semiconductor companies have already progressed to 5-nanometre, 3-nanometre, and even 2-nanometre nodes, meaning India isn't just racing to build advanced chips, it also needs to simultaneously develop the equipment, materials, design capabilities, research infrastructure, and skilled workforce required to sustain advanced manufacturing at that level.
Semicon 2.0 represents the next stage of that broader effort. If India succeeds in moving from 7-nanometre toward 3-nanometre technology over the coming eight years, it could meaningfully strengthen the country's position in the global semiconductor race, and push India's role beyond electronics assembly and chip packaging into genuine advanced chip design and manufacturing.
FAQs
Q1. What is India's target under Semicon 2.0?
Developing advanced chip technology in the 7-nanometre to 3-nanometre range over the next eight years, up from India's current 40-nanometre technology.
Q2. How much investment has been approved under the Semicon India Programme so far?
₹1.77 lakh crore across 12 approved semiconductor units, with three, Micron, Kaynes, and CG Power, already in commercial production.
Q3. How is India supporting semiconductor startups?
Through the Design Linked Incentive scheme, which has supported 105 startups, with 24 receiving ₹7,362 crore in financial assistance, and 15 subsequently raising ₹10,515 crore in venture capital funding.
Q4. What is India's workforce target under this new phase?
One lakh trained semiconductor design engineers, an increase from the earlier target of 85,000 engineers over 10 years.