India Secures Up to $12 Billion in Semiconductor Investment Pledges Under Semicon 2.0
New Delhi — India has secured semiconductor investment commitments worth between $11 billion and $12 billion under Semicon 2.0, the second phase of the government’s semiconductor program, Union Electronics and IT Minister Ashwini Vaishnaw said Thursday.
Speaking at Semicon India 2026, Vaishnaw said the commitments cover semiconductor equipment, materials, gases, chemicals and substrates, with the investments expected to materialize over the next two to three years.
The minister said companies will decide where to locate their semiconductor projects based on factors including policy certainty, government support and the strength of the surrounding ecosystem.
“Industry chooses the location depending upon where they feel more comfortable, how much policy certainty they see, what kind of support they see from governments, from the other ecosystem fields,” he said.
Semicon 2.0, approved with an outlay of Rs 1.27 lakh crore, focuses on chip design, semiconductor equipment and materials, fabrication plants, advanced packaging, research and development, and workforce development.
At the event, Tata Electronics signed an agreement with Ascendas First Space to develop a 363-acre vendor park that will support the supplier ecosystem surrounding its semiconductor fabrication plant in Dholera, Gujarat.
Tata Electronics also signed agreements with Fujifilm to localize critical semiconductor materials and with JSR Corporation for photoresists and advanced chemicals for the Dholera plant.
The program could attract about Rs 4 lakh crore in investment and support roughly Rs 2 lakh crore in semiconductor production over its duration, according to a recent report.
Fiscal incentives include 40% capital expenditure support for silicon fabrication plants on a pari-passu basis and up to 75% combined central and state government support for research, development and talent initiatives. (Source: IANS)
