India expands semiconductor incentives beyond fabs to boost the wider component ecosystem.

India is entering the final phases of launching Semicon 2.0, an updated iteration of its semiconductor mission designed to extend financial and policy support across the entire industry ecosystem. Moving past the initial focus on fabrication units, the new framework introduces targeted incentives for chip design startups, assembly, testing, marking, and packaging (ATMP) facilities, equipment manufacturers, and raw material suppliers. By subsidizing these interconnected segments, the initiative aims to reduce India's reliance on technology imports, fortify supply chain resilience, and cultivate a globally competitive, innovation-led manufacturing environment. Central to Semicon 2.0 is the development of long-term indigenous capabilities through increased funding for advanced research and development, academic collaboration, and specialized workforce training. The strategy shifts from merely scaling up raw manufacturing capacity to establishing a self-sustaining ecosystem capable of servicing global markets. Through this comprehensive approach—spanning from initial design and materials to final packaging and innovation—India intends to position itself as a trusted international semiconductor hub, driving high-value investments and creating sustainable technology employment. $MOSCHIP $TATAELXSI