Industry Hails Semicon 2.0 as Catalyst for Massive Private Capital
New Delhi – The announcement of the Semicon 2.0 programme, backed by a ₹1.27 lakh crore government outlay, has been met with enthusiastic approval from the Electronics System Design and Manufacturing (ESDM) sector. The India Electronics and Semiconductor Association (IESA) believes the initiative can draw more than ₹5 lakh crore of private investment within the next five to seven years.
The scheme is an expansion of the existing Semicon India programme and tackles six pivotal pillars of the semiconductor value chain: chip design, wafer fabrication, assembly‑test‑packaging (ATP), equipment and material production, research & development, and skilled‑human‑resource development.
IESA President Ashok Chandak called the official notification a “significant milestone”, noting the rapid execution after cabinet approval reflects the government’s seriousness about policy continuity, effective implementation and long‑term commitment.
Investors in the semiconductor arena typically consider a 10‑15 year horizon. Hence, policy stability is a key driver for confidence. Chandak asserts that a steady policy environment will reinforce trust among both domestic and international investors.
The first phase of the broader semiconductor mission has already laid groundwork: 12 projects have been green‑lighted, more than 100 design start‑ups have received support, and academic institutions now have greater access to electronic design automation (EDA) tools.
Semicon 2.0’s most striking attribute is its comprehensiveness. It spans the entire value chain – from chip design and fabrication plants to ATP facilities, equipment and material manufacturers, R&D laboratories, and talent development programmes.
The government’s decision to constitute a high‑level committee chaired jointly by the Principal Scientific Advisor and the National Security Advisor is also praised. The committee will identify strategically important semiconductor products, ensuring that incentives are directed toward sectors vital for national security and strategic priorities.
Based on the current investment pipeline and the broadened scope, IESA estimates that more than ₹5 lakh crore could be attracted to fabrication units, ATP and OSAT facilities, equipment and material manufacturers, R&D centres, chip design houses and related supply‑chain activities under Semicon 2.0.
Chandak emphasized that the financial support from the government should be viewed as a catalyst that mobilises large‑scale private capital, rather than simply a subsidy. The expansion of the semiconductor ecosystem will also generate demand for machinery, specialty chemicals, packaging, logistics and a highly skilled workforce, benefiting the whole industrial landscape.
The association further suggests that Semicon 2.0 be examined in conjunction with other schemes such as the Electronics Components Manufacturing Scheme (ECMS), Mobile Phone Manufacturing Scheme (MPMS) and Electronics Manufacturing Clusters (EMC). Their combined effect could boost domestic value addition, stimulate technological development and promote self‑reliant manufacturing in India.