India Launches Rs 1.27 Lakh Crore Semicon 2.0 Program to Boost Domestic Chip Production

India has launched a Rs 1.27 lakh crore Semicon 2.0 programme intended to build a home‑grown chip ecosystem, reduce reliance on imports and revive the nation’s chip ambition that was set back in 1989.

Cabinet approval added two more semiconductor manufacturing units, bringing the total approved plants to five, and also cleared a fifth unit in a separate announcement, signaling a rapid expansion of production capacity across multiple states.

Semicon 2.0 plan includes the establishment of three supercomputers to support design work, aims to generate thousands of skilled jobs and is expected to attract significant private investment to meet growing global chip demand.

PM Modi inaugurated the first domestically produced chip at the Semicon India 2025 event, highlighting the government’s push to position India as a major player in the worldwide semiconductor market and to close the technology gap.