Semicon 2.0: Scaling India’s Semiconductor Value Chain for Technological Sovereignty

The Union Ministry of Electronics and Information Technology has unveiled the 'Semicon 2.0' scheme, a strategic policy intervention aimed at cementing India’s position in the global semiconductor value chain. With a substantial financial outlay of ₹1.27 lakh crore, the initiative moves beyond mere assembly to foster a holistic ecosystem. The scheme is structured around six critical pillars: semiconductor design, specialized machinery, advanced materials, fabrication (fabs), ATMP (Assembly, Testing, Marking, and Packaging)/OSAT (Outsourced Semiconductor Assembly and Test), and robust Research and Development (R&D). This policy shift is significant for India’s economic and national security. By incentivizing the entire lifecycle of chip production, the government aims to reduce import dependency on critical electronic components, which are the backbone of modern digital infrastructure, defense systems, and the automotive sector. The focus on R&D and indigenous material sourcing addresses the 'missing middle' in India’s electronics manufacturing sector, moving the country up the value-added chain from low-end assembly to high-end fabrication.