The Ministry of Electronics and Information Technology (MeitY) has notified all six pillars of Semicon 2.0, the ₹1,27,500 crore second phase of the India Semiconductor Mission, on August 31, 2026. The notification sets out eligibility criteria and incentive structures across chip design, fabrication, ATMP/OSAT packaging, materials and equipment, research and development, and talent development, opening the scheme to a wider pool of applicants than its first phase.
The Union Cabinet had approved Semicon 2.0’s fiscal outlay on July 15, 2026, and the follow-up MeitY notification operationalises the scheme just weeks ahead of Prime Minister Narendra Modi’s inauguration of the fifth edition of SEMICON India on September 17, 2026, at Yashobhoomi (India International Convention Centre) in New Delhi.
Who Can Now Apply Under Semicon 2.0?
Unlike the first India Semiconductor Mission, which largely targeted large fabs and established players, Semicon 2.0 explicitly widens eligibility to chip-design startups, MSMEs, materials and equipment manufacturers, research institutions and training bodies. Support extends beyond conventional capital subsidy to include seed funding, equity co-investment, royalty-linked financing and deployment-linked incentives, according to the six-pillar framework notified by MeitY.
Officials have indicated the scheme prioritises India-designed chipsets built on indigenous intellectual property, a shift intended to reduce long-term dependence on foreign chip architectures as India’s electronics manufacturing base expands.
What Do Industry Bodies Say About the Semicon 2.0 Notification?
Electronics and semiconductor industry associations have broadly welcomed the widened scope, arguing that MSMEs and design startups were largely excluded from meaningful support under the first mission despite being critical to building a domestic supply chain. Analysts tracking the sector note that the ₹1,27,500 crore outlay, roughly $13.21 billion, signals continuity of state support even as global semiconductor investment cycles remain volatile.
Market and Trade Reaction
Listed electronics manufacturing and component companies have seen renewed investor interest since the July Cabinet approval, with the sector viewed as a beneficiary of sustained policy continuity. Equipment and materials suppliers, previously underserved by incentive schemes focused on fabs, are expected to be among the first to benefit from the newly notified pillars.
What Happens Next?
Applications under the newly notified pillars are expected to open in the coming weeks, with further procedural detail likely to be unveiled at SEMICON India 2026 on September 17. Companies and institutions should track MeitY and India Semiconductor Mission (ISM) portals for application windows and pillar-specific documentation requirements.
Frequently Asked Questions
What is the total outlay of Semicon 2.0?
Semicon 2.0 carries a fiscal outlay of ₹1,27,500 crore, approved by the Union Cabinet on July 15, 2026, and notified across six pillars by MeitY on August 31, 2026.
Who is eligible to apply under Semicon 2.0?
Eligible applicants include semiconductor fabs, ATMP/OSAT packaging units, chip-design startups, MSMEs, materials and equipment manufacturers, research organisations and training institutions.
When will SEMICON India 2026 be held?
Prime Minister Narendra Modi will inaugurate the fifth edition of SEMICON India on September 17, 2026, at Yashobhoomi (IICC), New Delhi.
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