India launches Semicon 2.0: up to 40% incentives, ₹20,000cr requirement
India just rolled out Semicon 2.0, a major plan to build its second commercial chip plant by 2031.
The government is offering up to 40% cash incentives for a modern facility operating on standard 12-inch wafers, but companies need to invest at least ₹20,000 crore ($2.1 billion) and hit ₹7,500 crore in yearly revenue by FY2026.
This time, the focus is on attracting serious global players and building a stronger local supply chain: less about massive subsidies, more about quality investments.
Display fab incentives, ₹15cr startup seed
Semicon 2.0 isn't stopping at chips: it's also funding India's first display-chip fab and giving a boost to homegrown chip-design startups.
Display projects can get 35% of their project costs as cash incentives from the Centre, in addition to state government sops, if they invest ₹10,000 crore or more and have reported at least ₹5,000 crore ($525 million) in revenue as of FY26, while new startups can score up to ₹15 crore in seed funding with no cap on matched private equity investments.
As IT Minister Ashwini Vaishnaw puts it, "will not be on quantity but the quality of projects that will objectively add to India's strategic autonomy."