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India has opened applications under the second phase of its semiconductor manufacturing programme and approved 12 additional electronics component projects involving proposed investments of ₹7,503 crore, as the government seeks to reduce dependence on imported manufacturing materials and equipment.
Union Electronics and Information Technology Minister Ashwini Vaishnaw launched the Semicon 2.0 web application portal on November 6, 2026, allowing companies to seek support for semiconductor fabrication plants, manufacturing equipment, materials and chip assembly facilities.
At the same event, the Ministry of Electronics and Information Technology announced another round of approvals under the Electronics Components Manufacturing Scheme (ECMS).
The 12 projects are expected to generate production worth ₹39,045 crore and create 7,127 direct employment opportunities across seven states.
The announcements mark a shift towards developing the industrial supply chains required to manufacture sophisticated electronics within India, rather than relying primarily on imported components for final assembly.
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Semicon 2.0 Opens Applications For Chip Manufacturing
The newly launched portal accepts applications under three of the six pillars of Semicon 2.0.
These cover machinery and materials used in chip production, the establishment of semiconductor fabrication plants, and facilities involved in assembling, testing and packaging chips.
Semiconductor fabrication plants, commonly called fabs, manufacture electronic chips using specialised machinery, chemicals and extremely precise production processes.
Assembly, testing, marking and packaging facilities, known as ATMP units, prepare manufactured chips for use in electronic devices.
Outsourced semiconductor assembly and test facilities, or OSAT units, perform similar functions for chip manufacturers.
India’s semiconductor expansion depends on developing these activities alongside supporting industries that supply equipment, gases, chemicals and other essential materials.
The Union Cabinet approved Semicon 2.0 on July 15, 2026, with a total allocation of ₹1,27,500 crore.
Consequently, the November 6 announcement represents the opening of applications under an already approved programme, not a fresh allocation of the entire amount.
Vaishnaw said India wanted to attract at least three major semiconductor equipment manufacturers and five companies specialising in chemicals and gases.
These are government targets rather than companies whose investments have already been confirmed.
Twelve New Projects Target Components And Raw Materials
The government has approved 12 additional applications under ECMS, expanding support for materials and components used in electronics manufacturing.
Four approvals concern components such as multilayer printed circuit boards, relays, heat sinks and specialty ceramics.
Printed circuit boards connect electronic components within devices, while heat sinks help remove heat generated by processors and other equipment.
Other projects focus on manufacturing copper foil, battery anode materials, cathode active materials, polypropylene film and camera components.
The new approvals include the first ECMS-backed projects for copper foil, cathode active materials and specialty ceramics.
These products are important because modern electronics manufacturing depends on several layers of specialised industrial inputs.
Copper foil, for example, is used in printed circuit boards and lithium-ion battery manufacturing.
The approved companies include Indo Asia Copper, TACC, Vidyuta Materials, NeST ICELR and Voltix Semicon.
Projects involving Rockwell Automation India and Wipro Pari Robotics will support industrial control systems, factory automation and manufacturing equipment.
The facilities are planned across Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh.
The ₹7,503 crore investment figure represents projected spending associated with the approved projects. It should not be interpreted as a direct government grant of the same amount.
Similarly, the expected production and employment figures depend on the projects being implemented and reaching their planned operating capacity.
Government Targets Domestic Chip Supply Chains
With the latest approvals, ECMS has cleared 118 applications covering 34 product categories across 16 states.
Together, these projects involve expected investments of ₹77,051 crore, projected production worth ₹5,73,146 crore and potential direct employment for 81,755 people.
The government says the programme is intended to strengthen domestic manufacturing and reduce dependence on overseas suppliers.
Under the first phase of the Semicon India Programme, 12 semiconductor projects involving investments exceeding ₹1.64 lakh crore were approved across six states.
According to the government’s November 6 announcement, five of those projects had begun commercial production by October 2026.
The India Semiconductor Mission has also supported chip-design activities through access to electronic design automation software.
Such tools allow engineers to develop and test semiconductor designs before they are manufactured.
The government says 105 startups have received access to these tools, while 24 have obtained funding support and 15 have attracted venture capital investment.
Under the Chips to Startup programme, 332 institutions have received design tools, and approximately 70,000 students have undergone training.
These measures are intended to develop the specialised workforce required for semiconductor design and production.
However, approving a project does not guarantee its commercial success.
Semiconductor manufacturing requires reliable electricity, specialised infrastructure, access to technology and long-term demand from customers.
The government’s ability to attract equipment suppliers and advanced materials manufacturers will therefore be important in determining whether India can develop a competitive semiconductor supply chain.
For now, the confirmed development is the opening of the Semicon 2.0 application process and the approval of additional electronics manufacturing projects.
What This Means For You:
The initiative could eventually support more domestic production of electronics components and create specialised manufacturing jobs. Businesses and technology startups should examine the applicable scheme requirements before treating the newly opened application process as a confirmed funding award.
