Centre to get Semicon 2.0 policy in place in next 3-4 months: Vaishnaw

Vaishnaw also said that under Semicon 2.0, an equal focus will be on ecosystem partners, equipment manufacturing, fabs, ATMPs, and other segments of the overall semiconductor ecosystem

The second phase of the India Semiconductor Mission (ISM), under which the Centre provides financial support to firms establishing chip facilities in the country, is in advanced stages and is expected to be out in the next three-four months, Union Minister Ashwini Vaishnaw said on Wednesday.

The ISM is a government initiative under the Ministry of Electronics and Information Technology (Meity) aimed at building semiconductor and display manufacturing ecosystem in India. Launched in 2021, it seeks to position India as a global hub for electronics manufacturing, with a focus on promoting investment, research, and design in semiconductor technology.

Addressing a press conference at the Semicon India event in Noida, Vaishnaw said the scope of the scheme will be much larger than Semicon 1.0. The minister, however, did not specify the outlay of the next phase of the semicon programme.

“We are now at a stage where the first phase of the semicon programme is practically complete. Now we are formulating Semicon 2.0, which will be a much-expanded form of the first phase,” Vaishnaw said.

The minister also announced that UP would soon become the fourth state in the country to have a semiconductor facility. Till now, only Gujarat and Assam have been given the nod to set up chip units while Maharashtra is waiting for approval.

Vaishnaw said that under Semicon 2.0, equal focus will be on ecosystem partners, equipment manufacturing, fab, ATMP (assembly, testing, marking, and packaging), and other segments of the overall semiconductor ecosystem.

Further, the minister emphasised on three key focus areas under the new scheme: attracting equipment manufacturers, promoting the development of specialised materials, and securing chemical supplies essential for the semiconductor industry in India.

Under the first phase of ISM, with an outlay of Rs 76,000 crore, five chip projects have been approved by the Union Cabinet. Total investment committed to date for these projects has reached Rs 1.5 trillion.

The approved projects are: Tata Electronics’ semiconductor fab in Dholera, Gujarat; three chip packaging units by Micron, CG Power and Kaynes Semicon, also in Gujarat; and an ATMP unit by Tata Semiconductor in Assam.

The $10 billion Tower-Adani fab unit, which was recently announced by the Maharashtra government, is yet to be approved by the central government under the ISM.