Semicon 2.0 gets bigger: Govt targets 200 chip design startups with ₹1.27 lakh crore plan, says Ashwini Vaishnaw

With a Rs 1,27,500 crore outlay, the government is stepping up its semiconductor ambitions, targeting at least 200 startups and companies for chip design in India under Semicon 2.0, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Thursday, PTI reported.

Speaking at the inaugural session of SEMICON India 2026 in New Delhi, Vaishnaw said chip design would be the first of six pillars under the next phase of the semiconductor mission.

200 chip design startups

Under Semicon 1.0, more than 105 startups attempted chip design, of which about 20 secured venture capital funding worth around Rs 800 crore.

"That was just the beginning. This time our ambition is much bigger. We would be targeting at least 200 startups and companies which design chips in India across the spectrum of semiconductor requirements," he said.

Vaishnaw said Semicon 1.0 had focused on building the foundation for a domestic semiconductor industry by developing talent and the wider ecosystem.

Don't Miss: India secures 1.9 MT steel quota under EU tariff regime; total access seen at 2.8 MT

"Now, we have to build the building over this foundation," Vaishnaw said.

The six pillars of Semicon 2.0 are design, machines and materials, fabrication units, advanced packaging, research and development, and talent.

Machines, materials and fabrication

The second pillar will cover the ecosystem for capital equipment, maintenance facilities, chemicals and gases. Vaishnaw noted participation from more than 28 countries at the conference.

Recalling guidance from the prime minister five years ago at the start of the programme, Vaishnaw said, "Don't think short term, think long term. Don't think fab, think ecosystem," adding that this philosophy had continued to shape the mission's design.

The third pillar will focus on setting up more display, memory, silicon, compound and logic fabrication units, which Vaishnaw said would have a multiplier effect on the ecosystem.

The fourth pillar will focus on scaling up advanced packaging, building on an existing 3D packaging facility coming up in Odisha.

"We would like to have much more progress in the advanced packaging because that is a very important part of the entire value chain."

R&D and semiconductor talent

The fifth pillar will focus on industry-driven, applied R&D projects in collaboration with academia. Vaishnaw invited industry participants to suggest projects for this collaborative approach.

On talent, Vaishnaw said the government had already trained 70,000 design engineers in four years against a Semicon 1.0 target of training 85,000 over 10 years.

More than 400 universities now have access to the world's latest Electronic Design Automation (EDA) tools from Cadence, Siemens and Synopsys. The Semiconductor Laboratory in Mohali is being used for taping out student-designed chips.

Under Semicon 2.0, the government will additionally target developing 1 lakh skilled technicians, cleanroom personnel and factory floor talent for direct employment in upcoming semiconductor factories in India, creating a global pool of talent.

Must Read: India secures 1.9 MT steel quota under EU tariff regime; total access seen at 2.8 MT

Semicon 1.0 to Semicon 2.0

Vaishnaw described the semiconductor mission as a long journey, saying the foundation built so far would pave the way toward India's goal of becoming a developed nation, or Viksit Bharat, by 2047.

SEMICON India 2026, themed 'Silicon to Systems: Building the Ecosystem', was inaugurated by Prime Minister Narendra Modi in New Delhi on Thursday.

The Government of India approved Semicon 1.0 in December 2021, with an outlay of Rs 76,000 crore. Twelve semiconductor manufacturing units were approved, carrying a cumulative investment of over Rs 1.64 lakh crore.

India approved Semicon 2.0 in July 2026 with a total outlay of Rs 1,27,500 crore.