The Ministry of Electronics and Information Technology of India (MeitY) on August 31, 2026, issued the Semicon 2.0 - Scheme for development of Semiconductor Design and Manufacturing Ecosystem in India.
The following has been stated:
• The scheme is structured around 6 pillars and 10 categories, covering strategic and commercial semiconductor design, deployment of chips/SoCs, semiconductor equipment and materials, silicon and compound semiconductor fabs, display fabs, ATMP/OSAT facilities, advanced semiconductor R&D and talent development.
• Key fiscal support includes 9% reimbursement on net sales for five years under the Deployment-Linked Incentive, seed funding of up to ₹15 crore and equity/royalty financing for eligible chip-design companies, 30% of capital expenditure for specified equipment/material facilities, 40% for silicon wafer fabs, 35% for compound semiconductor and display fabs, 35% for advanced packaging and 25% for legacy packaging, and up to 75% of project cost for advanced semiconductor R&D and talent development.
• Silicon wafer fabs require a minimum investment of ₹20,000 crore, while other fabs, display and packaging projects have specified investment, revenue, capacity and technology requirements. The India Semiconductor Mission (ISM) is the nodal agency, with C-DAC supporting design-related categories.
• Projects may generally run for up to six years, and the scheme will initially accept applications for three years. Incentives will be disbursed based on approved conditions, with a mid-term impact assessment after three years.
[Notification no. - W-38/6/2025-IPHW]
