India Semicon 2.0 Domestic Chip Design Programme Gets Rs 1.27 Lakh Crore Push 

The Centre has notified the operational framework for the India Semicon 2.0 domestic chip design programme, placing chip design and intellectual property at the centre of India’s expanded semiconductor strategy. The Rs 1.27 lakh crore programme will also support semiconductor manufacturing equipment, raw materials, fabrication plants and advanced chip packaging. 

The India Semicon 2.0 domestic chip design programme divides government support into six areas, with at least three focused on chip design. Support will cover chips developed for strategic applications, commercial markets and technologies intended for large-scale domestic use. 

For areas linked to national importance and critical infrastructure, the government will identify technologies and intellectual property related to computing, memory, radio frequency, power, networking and sensors. Indian companies can work independently or collaborate with global companies, research organisations and academic institutions. 

A separate design track will support commercially viable Indian fabless chip companies. Eligible companies can gain access to electronic design automation tools, multi-project wafer fabrication, IP cores, compute subsystems and post-silicon validation facilities. 

Start-ups and MSMEs developing commercial chips can receive seed funding of up to Rs 15 crore or 50% of the project cost, whichever is lower. Larger companies can opt for royalty financing, while the government may make equity investments alongside venture capital and private equity investors. 

The programme also strengthens support for Indian chip design beyond the design stage. Companies developing semiconductor equipment, semiconductor-grade wafers, photomasks, photoresists, substrates, chemicals, gases and testing facilities can receive capital expenditure support of 30%. 

Large silicon wafer fabrication plants can receive support of up to 40% of eligible capital expenditure. Advanced packaging projects, including 2.5D and 3D packaging, can receive up to 35% support. Research and talent-development projects may receive support of up to 75% of project costs. 

The semiconductor ecosystem is also expected to expand its skilled workforce. IT Minister Ashwini Vaishnaw said India developed 85,000 semiconductor engineers in four years and has set a new target of training another one lakh engineers. 

The India Semicon 2.0 domestic chip design programme builds on the first semiconductor mission, under which 12 chip plants have been approved. The expanded framework places greater emphasis on domestic chip design, manufacturing capabilities and the broader semiconductor ecosystem.