The government wants to expand India's semiconductor manufacturing through Semicon 2.0 by encouraging more memory fabs, display fabs, and advanced chip facilities. Electronics and IT Secretary S. Krishnan said the next phase will strengthen India's semiconductor industry and build a complete chip ecosystem. The move aims to reduce import dependence and position India as a major global semiconductor manufacturing hub.What Is Semicon 2.0?Semicon 2.0 is the government's new semiconductor support programme with a budget of ₹1.27 lakh crore. It builds on the progress made under the first phase by supporting chip design, manufacturing, research, materials, and packaging. The government also wants to attract more investments in memory fabs, display fabs, and CMOS fabrication units.Why Does India Want More Memory and Display Fabs?S. Krishnan said India needs a broader semiconductor ecosystem instead of relying on only one type of chip factory. More memory fabs and display fabs will help meet growing demand from electronics, AI, automobiles, telecom, and consumer devices while creating skilled jobs across the country.The Union Cabinet approved Semicon 2.0 on July 15, 2026.The programme has a total outlay of ₹1.27 lakh crore.The roadmap includes six major pillars covering design, manufacturing, R&D, packaging, materials, and talent.The government plans to encourage more semiconductor fabs in India, including memory and display units.Existing semiconductor projects approved under Semicon 1.0 will continue alongside the new programme.Trending AnalysisSemicon 2.0 is trending because India is expanding its long-term semiconductor strategy at a time when global demand for chips continues to grow. Officials believe a wider manufacturing ecosystem will improve supply chain resilience and attract international investment. The focus on memory fabs, display fabs, and advanced semiconductor packaging shows that India wants to compete in more areas of chip manufacturing instead of only assembly.Key HighlightsSemicon 2.0 has a budget of ₹1.27 lakh crore.The government wants more memory and display fabrication plants.S. Krishnan outlined plans to expand India's chip ecosystem.The programme supports design, manufacturing, packaging, and research.India aims to become a global semiconductor manufacturing hub.More investments are expected across the semiconductor supply chain.Bumppy: What's Next for Semicon 2.0?Semicon 2.0 is expected to attract new domestic and global investors over the coming years as India expands its semiconductor industry. More announcements related to fabrication plants and advanced manufacturing are likely as the roadmap moves forward. If implemented successfully, Semicon 2.0 could strengthen India's position in the global chip supply chain and boost high-tech manufacturing.Read More: Vikram-1 Rocket Aims to Transform India's Private Space Industry With Dedicated Satellite Launches
