Semicon 2.0: What it means for the semiconductor ecosystem

The Union Cabinet’s approval of Semicon 2.0 marks a significant step in advancing India’s semiconductor ambitions, with a comprehensive program aimed at strengthening capabilities across semiconductor design, fabrication, advanced packaging, equipment, materials, R&D and talent development. Building on the momentum of Semicon 1.0, the new program adopts a broader ecosystem approach and is expected to support investments across both Front-End of Line (FEOL) and Back-End of Line (BEOL) segments, while promoting the development of critical enabling industries across the semiconductor value chain. 

As the implementation framework evolves, businesses may need to evaluate emerging opportunities relating to investments, capacity expansion, technology partnerships, localization strategies and incentive support under the program. Organizations will also need to assess the interplay between central and state government support, infrastructure readiness, talent availability and ecosystem capabilities while formulating their India strategy. 

The attached alert provides an overview of Semicon 2.0, its key features, expected industry impact and strategic considerations for businesses across the semiconductor ecosystem.  

Should you require assistance in evaluating opportunities under the program, assessing incentive eligibility, or developing investment and localization strategies, please reach out to EY.

For a consultation, you may write to Aisha Ali Hussaini, Partner and Semiconductor Tax Leader, EY India
aisha.hussaini@in.ey.com