India expands chip incentivesexpands chip incentives to include design startups and suppliers
India's government launched Semicon 2.0 on July 6, 2026, expanding semiconductor incentives to include chip design startups and chemical suppliers. This initiative aims to reduce import dependence by building a complete domestic chip ecosystem beyond just fabrication facilities.
The program matters as it strengthens India's position in the global semiconductor market amid rising US-China chip competition.
Indian Government
Indian government views Semicon 2.0 as a strategic move to build a complete domestic chip ecosystem rather than just expanding manufacturing facilities.
- India's semiconductor industry employs over 50,000 workers as of 2025.
- Semcon 2.0 follows India's first semiconductor policy launched in 2021.
- Chip design is now a $15 billion global market dominated by US and European firms.
