INDIA RECEIVES $11–12 BILLION OF NEW SEMICONDUCTOR INVESTMENT PROPOSALS UNDER SEMICON 2.0

India has received semiconductor investment proposals worth approximately $11–12 billion under the second phase of its semiconductor programme, according to Electronics and IT Minister Ashwini Vaishnaw. The proposed investments cover equipment, materials, gases, chemicals and substrates, indicating that India’s semiconductor strategy is expanding beyond chip assembly toward a broader industrial ecosystem. The proposals are expected to be implemented over the next two to three years, subject to company-level approvals. The development is important because a semiconductor industry cannot be built through fabs alone. Manufacturing requires specialised chemicals, gases, wafer materials, equipment, testing, packaging and design capabilities. The government’s Semicon 2.0 programme is therefore designed to support multiple layers of the value chain. India has also increased support for semiconductor research and development, with eligible projects receiving substantial government assistance. The country is attempting to position itself as a reliable alternative manufacturing destination as global companies seek to diversify away from concentrated supply chains. For Indian startups, the programme could create opportunities in chip design, semiconductor IP, equipment, testing and specialised software. For states such as Odisha, Gujarat, Assam and other emerging semiconductor destinations, the new proposals could increase competition for investment while simultaneously expanding the national supply chain.