India has 12 semiconductor units with $20 billion investment, Semicon 2.0 to drive next phase: Vaishnaw

India's semiconductor manufacturing industry is progressing into a new phase, with the government announcing the establishment of 12 semiconductor units and a combined investment of $20 billion, according to Union Minister for Electronics and Information Technology Ashwini Vaishnaw. Three of these units have already started producing chips, marking a shift from policy and project approvals to actual production.

This progress is a result of the government learning from previous attempts and focusing on creating a clear policy framework and stronger execution.

Vaishnaw highlighted the recent approval of Semicon 2.0, indicating the government's intention to build upon the achievements of the first phase of its semiconductor programme, which is expected to reach a significant milestone in 2026. Speaking about the challenges faced by AMD in its attempt to become a semiconductor manufacturing hub in India back in 2005, Vaishnaw emphasized that India is taking decisive steps to emerge as a major semiconductor manufacturing and technology hub, reducing the risks associated with dependence on overseas supply chains.

Semiconductor chips play a crucial role in various sectors such as automobiles, smartphones, electronics, telecommunications equipment, defence systems, and emerging technologies. As India aims to become a significant player in the global semiconductor industry, Semicon 2.0 will be essential in determining whether the initial investments can translate into a broader and globally competitive chip manufacturing base.