India has secured roughly $12 billion in investment commitments for Semicon 2.0, the second phase of its effort to build a stronger position in global chip manufacturing. Approved by India’s Cabinet on July 15, 2026, and officially notified on August 31, the program has a government outlay of approximately $15 billion. It covers fabrication facilities, chip design, equipment and materials, advanced packaging, and research and development. Silicon wafer fabs can receive up to 40% capital expenditure support if they meet a minimum investment threshold of roughly $2.4 billion, or ₹20,000 crore. The initiative also aims to train about 100,000 semiconductor professionals and support at least 200 chip design startups. At SEMICON India 2026, held from September 17-19, Applied Materials pledged $5 billion and Lam Research committed around $1.2 billion for silicon facility development. Semicon 2.0 builds on Semicon 1.0, approved in December 2021 with a roughly $9 billion, or ₹76,000 crore, government outlay. The first phase approved 12 manufacturing projects and attracted more than $20 billion in private investment. Officials expect Semicon 2.0 to generate roughly $48 billion, or ₹4 lakh crore, in total investment over its lifecycle, including approximately $24 billion from production activities and another $12 billion through exports. The program’s startup and workforce components will be important to monitor because semiconductor manufacturing demands skills beyond India’s software-focused technical education system.