Following the successful first phase of the India Semiconductor Mission, the government is gearing up to launch a second phase, aiming to create a comprehensive ecosystem for the semiconductor industry. Minister of Electronics and Information Technology Ashwini Vaishnaw announced at a press briefing during the Semicon India 2024 event that the new initiative, referred to as Semicon 2.0, will be rolled out in the next three to four months. This phase is designed to incorporate all aspects of the semiconductor supply chain, including component manufacturers and raw material suppliers.

Vaishnaw highlighted the government’s commitment to expanding the semiconductor sector, stating, “We are formulating Semicon 2.0, which will be a much-expanded form of the first phase. We will work towards getting the entire ecosystem on board.” The original semiconductor mission was launched in December 2021, with an allocation of ₹76,000 crore for production-linked incentives. Since then, several projects have received approval, including a chip fabrication unit in Dholera, Gujarat, and four chip packaging units—three located in Sanand, Gujarat, and one in Morigaon, Assam. Collectively, these projects represent an investment of ₹1.50 lakh crore.

The second phase of the Semicon initiative will not only focus on fostering collaboration among various industry players but will also prioritize the availability of essential raw materials. Uttar Pradesh Chief Minister Yogi Adityanath, who attended the event, announced that the state is making land and capital subsidies available, amounting to approximately 25% of total project costs. Additionally, 1,000 acres of land in the Yamuna authority has been earmarked for semiconductor development.

The Semicon India 2024 event showcased nearly 250 exhibitors, including over 140 international participants, and featured significant announcements from industry leaders. Larsen & Toubro Ltd. revealed plans to invest over $300 million to establish a chip company, while NXP Semiconductors committed to investing more than $1 billion in India, thereby doubling its research and development efforts in the country.

In an inaugural session, Hidetoshi Shibata, CEO of Renesas Electronics, announced a partnership with CG Power to establish an assembly and test semiconductor plant in India. Shibata also stated that Renesas plans to double its workforce in India by next year, demonstrating the company’s confidence in the country’s semiconductor potential.

Randhir Thakur, CEO and Managing Director of Tata Electronics, emphasized the importance of the semiconductor industry in realizing the vision of “Viksit Bharat” (Developed India) by 2047. He noted that this sector could generate 50,000 direct jobs, significantly contributing to overall job creation within the ecosystem.

Ajit Manocha, President and CEO of SEMI, asserted that India is on the path to becoming the next semiconductor powerhouse in Asia. He pointed out that with artificial intelligence driving global semiconductor demand, approximately 150 new fabrication plants will be necessary to meet the industry's ambitious goal of achieving a $1 trillion market by 2030.

The launch of Semicon 2.0 is seen as a crucial step in bolstering India's position in the global semiconductor landscape. By bringing together various stakeholders and focusing on the entire ecosystem, the government aims to enhance production capabilities, increase local sourcing of raw materials, and ultimately reduce dependency on imports. As the semiconductor industry evolves, the initiatives under Semicon 2.0 are expected to catalyze innovation, drive economic growth, and create a robust supply chain, setting the stage for India to play a pivotal role in the global semiconductor market.

In conclusion, the forthcoming Semicon 2.0 initiative represents a strategic move by the Indian government to strengthen its semiconductor ecosystem, ensuring that all facets of the industry are well-integrated and positioned for future growth. With substantial investments from leading companies and strong government support, India is poised to emerge as a key player in the semiconductor space, aligning with global trends and demands.