India Expands Semiconductor Strategy Beyond Fabs With Rs 128,000 Crore Semicon 2.0 Plan

India announces a broadened semiconductor roadmap that moves past fab construction to include design houses, advanced packaging, testing labs and a domestic supply chain, backed by the Rs 1.28 lakh‑crore (about $154 billion) Semicon 2.0 budget.

Government cleared the funding in the current fiscal year, targeting 30 percent of the total budget for ecosystem incentives, tax breaks for chip designers and subsidies for equipment import, aiming to cut import reliance from 90 percent to under 50 percent within five years.

Startups received $1.4 billion in venture capital during September, with several achieving tape‑out of prototype chips, a milestone highlighted at the SEMICON 2026 exhibition that industry analysts say will test India’s ability to scale production and attract global partners.

Industry expects the plan to generate up to 200,000 skilled jobs and boost semiconductor exports to $30 billion by 2030, according to a report from the Institute for Competitiveness released ahead of the SEMICON 2026 conference.