The government's Semicon 2.0 initiative is projected to give rise to roughly 200 chip design firms, as authorities broaden backing for semiconductor design, fabrication, and research. Ashwini Vaishnaw, the Union Minister for Electronics and Information Technology, indicated that the incoming firms could bolster the country's homegrown semiconductor design capabilities. The administration is expanding on an earlier phase of the India Semiconductor Mission, a programme that provides startups with design tools, financial backing, and technical assistance. Vaishnaw noted that the country's established capabilities in information technology and global capability centres are now branching into semiconductor design, projecting that at least 200 chip design companies could take shape under the Semicon 2.0 initiative, remarks he delivered at a fireside chat. During the initial phase of the India Semiconductor Mission, authorities directed attention toward lowering the steep expenses associated with Electronic Design Automation tools. Over 105 semiconductor design startups were granted access to sophisticated EDA software platforms used throughout the chip development, testing, and verification process. Of those startups, 20 also attracted venture capital investment, according to official figures. Capital injection has allowed certain companies to advance past the initial stages of product development and push toward real-world commercial use. Chip designers at nascent technology ventures are building processors tailored to a range of end-use applications. The country has broadened workforce development programmes focused on the semiconductor sector. Roughly 70,000 engineers specialising in chip design completed their training over a four-year period, falling short of the 85,000 target. Authorities anticipate that this talent pool will underpin activities spanning chip design, research, fabrication, and associated sectors. The country is expanding its homegrown chip production capabilities. Five of the 12 chip manufacturing facilities greenlit under the inaugural phase of the India Semiconductor Mission have begun operating commercially, Vaishnaw stated. Authorities have shifted their attention toward applied research and development activities within factory settings. He noted that the initiative was expected to enhance product standards and refine manufacturing procedures. Growth in electronics manufacturing has helped small and medium-sized enterprises in India develop high-precision production capabilities applicable to aerospace, defence, semiconductor, and broader electronics industries. Authorities are also engaging with industry partners to develop domestic manufacturing of chip-making tools and raw materials. Domestic firms and international partners have begun talks and formalised agreements covering equipment and essential raw materials, Vaishnaw noted. Water recycling technology would be deployed at the chip manufacturing plants to cut down on consumption of fresh water supplies. Authorities are also promoting the adoption of closed-loop cooling technology in data centres and manufacturing plants wherever feasible. Delegates from industry and government across multiple semiconductor markets convened at SEMICON India 2026 to explore investment opportunities and strengthen supply-chain partnerships. Delegations from the United States, Japan, Singapore, South Korea, the Netherlands, and Finland took part, with Vaishnaw noting that the country roundtables were demonstrating opportunities for firms from those nations to broaden their operations in India. Foreign governments, he noted, were backing firms pursuing investment prospects within India. A bilateral forum between India and Singapore drew 142 delegates to examine topics spanning manufacturing, advanced packaging, and supply-chain management. A total of 139 attendees took part in the India-Europe forum, addressing topics ranging from investment and equipment to materials, manufacturing, chip design, research, and talent development. A total of 115 delegates convened at the India-South Korea Country Roundtable. Topics addressed included chip fabrication, raw materials, next-generation packaging, technological development, investment flows, and supply network resilience. Vikram Misri, the Foreign Secretary, noted that robust semiconductor supply networks depend on dependable alliances between nations. Trustworthiness, credibility, incentives, and value generation were outlined as focal points for collaboration, alongside a call to strike a balance between national capacity and global partnerships. The updated Semicon 2.0 initiative aims to broaden its scope across chip design, fabrication, research, equipment manufacturing, and workforce development, while attracting a wider range of domestic and foreign players into the semiconductor sector.
