Semicon 2.0 Policy Set for Launch in 3-4 Months, Announces Vaishnaw

The government has initiated the second phase of its semiconductor policy, Semicon 2.0, which is anticipated to be ready within 3-4 months, according to Union Minister Ashwini Vaishnaw. Speaking at Semicon India 2024, he mentioned that 3-4 states have already attracted semiconductor investments, with a unit soon to be established in Uttar Pradesh.

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Semicon 2.0: Expanding the Semiconductor Policy

Vaishnaw highlighted that the first phase of the semiconductor project is nearly complete. "We are at a stage when the first stage of semicon project is practically completed. Now we are formulating Semicon 2.0 which will be a much expanded form of Semicon 1.0. It may take 3-4 months to put it in place," he said.

The minister also noted that five projects with investments totalling Rs 1.5 lakh crore have been approved, with construction underway for two plants. The focus will now shift to attracting ecosystem partners and equipment manufacturers, similar to efforts made for fab and ATMP.

Focus on Ecosystem and Specialised Materials

Vaishnaw emphasised the need for a comprehensive semiconductor ecosystem in India. "We will now push for semiconductor ecosystem partners and equipment manufacturing like the way we did for fab and ATMP. Along with this there will be focus on bringing chemicals and gases and there will be emphasis on specialised materials," he said.

He explained that around 250 specialised chemicals and gases are used in semiconductor production, which require careful handling due to their unique properties. "There are around 250 specialised chemicals and gases that are used in it semiconductor production. They are unique and their handling is very tough. There are materials which are far purer than industrial grade products," Vaishnaw added.

New Proposals and State-Level Developments

Several new proposals are currently in the pipeline, including plans to upgrade the Mohali Semiconductor Lab. "We will take these proposals soon to the cabinet for approval very soon," Vaishnaw stated.

He reiterated that multiple states, including Uttar Pradesh, will soon see new semiconductor plants. Maharashtra has recently approved a chip manufacturing project through a joint venture between Adani Group and Israel-based Tower Semiconductor, involving an investment of approximately Rs 83,000 crore.

The Centre has yet to approve the Adani-Tower Semiconductor project for subsidy under the Indian Semiconductor Mission. This approval is crucial for advancing the project and ensuring its alignment with national objectives.

The government's ongoing efforts aim to create a robust semiconductor ecosystem in India, encompassing not just fabrication units but also essential materials and equipment manufacturing capabilities.