Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
India is preparing to expand its semiconductor incentive framework under the proposed Semicon 2.0 programme, moving beyond support for fabrication units to encourage investments across the broader semiconductor value chain. Recommendations in the national roadmap call for stronger backing for advanced packaging, compound semiconductors, critical materials, research infrastructure, talent development and strategic partnerships. The proposed framework also outlines new financing mechanisms, manufacturing clusters and export support aimed at strengthening India's long-term position in the global semiconductor industry while reducing dependence on imports.
India's next phase of semiconductor policy is expected to adopt a wider and more integrated approach, shifting focus from individual manufacturing projects to building an end-to-end semiconductor ecosystem. The proposed Semicon 2.0 framework seeks to expand incentives across multiple segments of the industry, enabling India to strengthen domestic manufacturing capabilities while improving its competitiveness in global supply chains.
The recommendations are part of the India Semiconductor Mission (ISM) Vision Document, which outlines a long-term strategy for developing semiconductor design, manufacturing, packaging, materials, research and talent capabilities through 2035. Rather than concentrating only on fabrication plants, the roadmap proposes targeted support for every critical layer of the semiconductor value chain.
A major emphasis has been placed on production strategy. The roadmap recommends prioritising four areas—wafer fabrication, advanced packaging and OSAT (Outsourced Semiconductor Assembly and Test), critical materials and substrates, and secure manufacturing for defence and strategic applications. It suggests that India should focus on areas where it can achieve scale and competitive advantage instead of attempting to replicate the entire global semiconductor manufacturing landscape.
The document also proposes establishing National Semiconductor Zones (NSZs) with standardised infrastructure, reliable utilities and demand-assurance mechanisms to improve manufacturing efficiency. These zones are intended to support higher asset utilisation while integrating Indian facilities with global supply chains. The roadmap further recommends exploring small modular nuclear reactors to meet the large and reliable energy requirements of semiconductor manufacturing facilities.
Advanced packaging has been identified as one of India's strongest opportunities. The roadmap recommends creating a National Centre for Advanced Packaging (NCAP) equipped with pilot lines for chiplets, 2.5D and 3D integration, advanced substrates and heterogeneous packaging technologies. It also calls for expanding OSAT capacity, establishing reliability laboratories and setting up post-silicon validation facilities to reduce dependence on overseas packaging ecosystems.
On the financing side, the roadmap proposes a National Semiconductor Capital Framework backed by government commitment of approximately USD 45–60 billion over ten years. It recommends creating a Semiconductor Support Fund for equity and first-loss protection, alongside a dedicated NIIF semiconductor vertical to co-invest with domestic and international investors. Export competitiveness is also expected to improve through dedicated financing windows and EXIM-backed support for semiconductor packaging and system-level exports.
Recognising the industry's talent requirements, the roadmap recommends establishing a National Fab Academy, expanding semiconductor-focused diploma and engineering programmes, strengthening advanced research at IITs and IISc, and launching initiatives to attract experienced global semiconductor professionals. The proposed strategy aims to build expertise across manufacturing, packaging, materials science, design engineering and system architecture.
The roadmap further recommends strengthening partnerships with countries such as the United States, Japan, South Korea and the European Union to secure access to critical semiconductor equipment, technologies and research collaboration. It also proposes deeper industrial partnerships, joint R&D programmes and long-term academic collaborations to accelerate technology transfer and strengthen India's position in the global semiconductor ecosystem.
Source ISM Gov
Advertisement
Facebook
Whatsapp
