Semicon 2.0: India targets 200 chip design startups and 1 lakh semiconductor technicians

India is looking to significantly expand its semiconductor ecosystem under the second phase of its national chip programme. Electronics and IT Minister Ashwini Vaishnaw says the government will target at least 200 startups and companies designing chips in India under Semicon 2.0. The announcement came at the inaugural session of SEMICON India 2026 in New Delhi on Thursday, September 17, where Vaishnaw outlined the government’s plans to build on the foundation created during the first phase.

Must Read: Factories, funding and fresh faces: India's chip dream getting real

While Semicon 1.0 focused on developing talent and building the wider ecosystem, the next phase expands capabilities across chip design, manufacturing, packaging, research and talent. The government also plans to create a larger pool of skilled workers for upcoming semiconductor factories in India. 

Semicon 2.0 expands beyond chip manufacturing

Chip design will be the first of the six pillars under Semicon 2.0. During Semicon 1.0, more than 105 startups attempted chip design, with around 20 securing venture capital funding worth about ₹800 crore. Vaishnaw said the government now wants to take that effort to at least 200 chip-design startups and companies across different semiconductor requirements.

Must Read: SEMICON India 2026: PM Modi highlights $13.5 billion semiconductor mission, 12 chip projects approved

The second pillar covers machines and materials, including capital equipment, maintenance facilities, chemicals and gases. The third focuses on setting up more display, memory, silicon, compound and logic fabrication units. The fourth aims to scale advanced packaging, building on a 3D packaging facility coming up in Odisha.

The fifth pillar will focus on industry-driven applied research and development through collaboration between companies and academia. Vaishnaw has also invited industry participants to suggest projects for this approach.

Government targets 1 lakh semiconductor technicians

Talent development forms the sixth pillar. Under Semicon 1.0, the government had targeted training 85,000 design engineers over 10 years, but Vaishnaw said 70,000 have already been trained in four years.

More than 400 universities now have access to electronic design automation tools from Cadence, Siemens and Synopsys. The Semiconductor Laboratory in Mohali is also being used for taping out student-designed chips.

Under Semicon 2.0, the government will additionally target 1 lakh skilled technicians, cleanroom personnel and factory-floor workers for direct employment in upcoming semiconductor factories. Semicon 1.0 was approved in December 2021 with an outlay of ₹76,000 crore, while Semicon 2.0 was approved in July 2026 with a total outlay of ₹1,27,500 crore.