{
  "id": 4619234,
  "title": "Government notifies Rs 1.27L-cr Semicon 2.0 with eligibility norms, sops",
  "url": "https://urgent.news/2026/08/31/government-notifies-rs-1-27l-cr-semicon-2-0-with-eligibility-norms",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-31T08:23:23.000Z",
  "source": {
    "name": "YourStory",
    "slug": "yourstory",
    "url": "https://yourstory.com/2026/08/government-notifies-rs-127l-cr-semicon-20-eligibility-norms-sops"
  },
  "original_language": "en",
  "account": "The government officially announced the Semicon 2.0 scheme on Monday, commencing the Rs 1,27,500-crore initiative aimed at bolstering India's semiconductor sector, from manufacturing to a comprehensive ecosystem. This initiative comes at a crucial time, as the global demand for advanced chips and memory surges due to the AI boom, and concerns over supply-chain vulnerabilities and geopolitical shifts intensify. The Union Cabinet approved the Semicon 2.0 scheme on July 15, 2026. The notification detailing the program's specifics, incentive structures, and eligibility criteria was issued on Monday.\n\nThe Semicon 2.0 scheme's primary goal is to achieve self-reliance and promote a globally competitive industry. IT Secretary S Krishnan clarified at a briefing that startups and companies owned by Indian citizens or OCI will receive financial support in the form of grants and equity co-investment for chip design in the commercial sector. Additionally, startups will be eligible for equity co-investment or royalty financing, while larger companies will have access to royalty financing or equity co-investment.\n\nIn terms of fabricating semiconductor chips, the scheme provides 40% fiscal support for silicon fabs and 35% for compound, display (LCD, OLED, micro LED), and other specialized fabs. For enhancing Assembly, Testing, Marking, and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) capabilities, the scheme offers advanced packaging incentives of 35% of capital expenditure and conventional packaging incentives of 25% of capital expenditure. Previously, under the first phase of the program, the government approved 12 semiconductor projects across six states, with three facilities—Micron's ATMP plant, Kaynes Semicon, and CG Semi OSAT facility—commencing commercial production earlier this year.",
  "summary": "The move comes at a time when semiconductors have emerged as a critical strategic resource globally, with the AI boom driving unprecedented demand for advanced chips and memory.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}