India invests Rs 1.27 lakh crore to chase semiconductor self-sufficiency

India’s semiconductor mission entered its second stage, Semicon 2.0, with a budget exceeding Rs 1.27 lakh crore to create an end-to-end chip ecosystem that includes design, fabs, advanced packaging, equipment, materials and research. The earlier Semicon 1.0 allocated Rs 76,000 crore and offered up to 50 % fiscal support for factories and testing facilities; the new phase adds emphasis on domestic equipment and an Indian IP stack.

So far, twelve projects attracting over Rs 1.64 lakh crore have been cleared, three of which are already in commercial production. Analysts such as Saurabh Agarwal and Krishan Arora argue the plan could boost domestic value addition, generate engineering jobs and lessen strategic vulnerability, but warn that mastering specialty materials, gases and venture-capital-intensive development cycles will be critical. The market, estimated at $38 billion in 2023, is projected to reach $100-110 billion by 2030, with the goal of meeting 70-75 % of India’s chip demand by 2029. Success will depend on consistent policy, patient capital and the ability to translate design talent into globally competitive products.