Global Chip Equipment Companies Evaluate India Manufacturing Under Semicon 2.0

New Delhi, Several global semiconductor-equipment manufacturers are evaluating opportunities to establish manufacturing and assembly operations in India as the government expands policy support under the Semicon 2.0 programme, according to Ministry of Electronics and Information Technology Secretary S. Krishnan.

“Global semiconductor equipment players are actively evaluating India as a manufacturing base under the Semicon 2.0 programme. The policy framework is designed to support not just fabs, but the entire value chain, including equipment and materials,” Krishnan said.

The government is engaging with semiconductor companies from the United States, Japan, South Korea and Europe as part of its effort to develop a broader domestic chip-manufacturing ecosystem. However, the companies considering investments, potential project locations and expected investment amounts have not been disclosed.

Semicon 2.0 expands the government’s focus beyond semiconductor fabrication and packaging facilities to include manufacturing equipment, specialty materials, components, full-stack Indian intellectual property, research and development, and workforce training.

India’s semiconductor manufacturing facilities currently depend heavily on imported production equipment. Establishing domestic manufacturing and assembly operations could strengthen supply-chain resilience and provide local support to fabrication, assembly, testing, marking and packaging facilities being developed across the country.

Krishnan said India’s expanding electronics-manufacturing base, policy support and availability of skilled professionals could help attract long-term investments. The government expects the programme to support both new manufacturing projects and partnerships between international equipment companies and domestic businesses.

The initiative follows the Union Cabinet’s approval of Semicon 2.0 with an outlay of approximately ₹1.27 lakh crore. The expanded programme is intended to address gaps across the semiconductor value chain while supporting chip design, fabrication, advanced packaging, equipment and materials.

India is currently developing multiple semiconductor fabrication and packaging projects under its broader semiconductor mission. The possible entry of global equipment manufacturers would add another layer to the ecosystem, although no specific investment commitment has yet been announced.

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