India Set to Unveil Ambitious 'Semicon 2.0' in Bold Push for Semiconductor Dominance

The Indian government is preparing to launch the Semicon 2.0 program, which aims to significantly expand the country's semiconductor manufacturing capabilities. The initiative follows Semicon 1.0 and is set to be revealed in three to four months. Several semiconductor units in India are already under construction, with significant investments being made.

The central government is gearing up to reveal the Semicon 2.0 program, which will offer a much broader scope compared to its predecessor, Union Minister for Electronics and Information Technology confirmed on Wednesday during the Semicon India 2024 event. 'We are now formulating the Semicon 2.0 program, which will be a much-expanded form of Semicon 1.0,' the minister announced, adding that the first phase is nearly complete.

'Semicon 2.0 may be unveiled in three to four months. The second phase will focus on the complete value chain,' the minister noted. The original program, known as the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India (or Semicon 1.0), was launched on December 21, 2021, with an investment of Rs 76,000 crore.

Highlighting India's growing semiconductor ecosystem, the minister mentioned that global industry leaders are praising the progress. He also revealed that the upgrade plan for the semiconductor lab in Mohali is ready and will soon be presented to the Cabinet.

So far, the government has approved five semiconductor units across India, with ongoing construction at two sites and work at the remaining three set to start soon. In June 2023, the Union Cabinet greenlit a semiconductor unit in Sanand, Gujarat. By February 2024, three more units were approved - two in Gujarat and one in Assam. Earlier this month, the government also approved Kaynes Semicon Pvt Ltd's proposal to establish another unit in Sanand, Gujarat.

The cumulative investment in these projects has reached approximately Rs 1.5 lakh crore. American chip maker Micron's advanced semiconductor fabrication plant in Sanand, Gujarat, which is India's first, is rapidly progressing and is expected to be operational by late 2024.

The minister also mentioned that several proposals are under evaluation, including ones for Uttar Pradesh. 'After evaluation, we will take them to the Cabinet for approvals,' he said. Prime Minister Narendra Modi, speaking at the same event, highlighted an ambitious goal to boost the electronics sector to USD 500 billion and create 6 million jobs by the decade's end. 'Our goal is that 100 percent of electronic manufacturing should happen in India. India will make semiconductor chips and the finished product too,' Modi affirmed.

(With inputs from agencies.)