India has secured $12 billion in investment commitments for its Semicon 2.0 initiative. The program is supported by a government outlay of $15 billion and aims to strengthen the country's position in the global semiconductor market. The cabinet approved the second phase on July 15, 2026, with an official notification issued on August 31.
The initiative covers the entire value chain, including fabrication, chip design, and research. Projects involving silicon wafer fabs can receive up to 40% capital expenditure support, provided they meet a minimum investment threshold of $2.4 billion. During the SEMICON India 2026 event, Applied Materials pledged $5 billion, and Lam Research committed $1.2 billion.
The government expects total investments for the program to reach $48 billion over its lifecycle, with $24 billion from production and $12 billion from exports. The plan includes training 100,000 specialists and supporting at least 200 chip design startups. The previous Semicon 1.0 phase, launched in 2021, involved a $9 billion outlay and 12 manufacturing projects.
