The Indian government has formally opened its doors to global chip makers and domestic electronics builders. Union Minister Ashwini Vaishnaw launched the new Semicon 2.0 Web Application Portal on November 6, 2026. This digital gateway will handle applications for a ₹1,27,500 crore fund meant to build a massive local microchip industry.
At the exact same event, the Ministry of Electronics and Information Technology (MeitY) made a second, entirely separate announcement. They approved 12 new projects under the Electronics Components Manufacturing Scheme (ECMS). These projects carry a projected investment of ₹7,503 crore. They will focus on circuit boards, battery materials, and factory tools.
It is vital for investors and supply-chain vendors to understand that these are two different schemes. Semicon 2.0 focuses on highly advanced silicon chips. The ECMS focuses on the broader parts needed to build electronics. Both schemes share one goal: cutting India's reliance on imported tech components.
Key Highlights at a Glance
- Semicon 2.0 Portal Live: Companies can now officially apply to build chip fabs, packaging units, and material plants.
- Serious Buyers Only: The government wants complete project reports with firm financial and tech partners in place.
- 12 ECMS Projects Cleared: A separate ₹40,000 crore scheme approved 12 new factories, creating over 7,100 direct jobs.
Semicon 2.0 Eligibility: Who Can Apply on the New Portal?
The India Semiconductor Mission (ISM) manages the Semicon 2.0 program. It has six main pillars. However, the newly launched portal is currently only accepting applications for three specific areas: Pillars 2, 3, and 4. Startups looking for chip design funding (Pillar 1) must use a different route.
Pillar 3 focuses on setting up more semiconductor fabrication plants, known as "fabs." A fab is a highly sterile factory where raw silicon turns into microchips. Fabs require billions of dollars, immense power, and flawless water supplies. Under Semicon 1.0, India focused on older, larger chips used in cars and appliances. Semicon 2.0 wants to expand this while looking toward more advanced chip sizes.
Pillar 4 covers Assembly, Testing, Marking, and Packaging (ATMP) and OSAT units. After a chip is printed on silicon, it must be cut, tested, and wrapped in protective cases. This packaging connects the chip to a motherboard. As devices get smaller, packaging gets harder. For example, understanding how TSMC uses advanced packaging for 3D DRAM shows why OSAT units are critical for high-end AI chips.
Pillar 2 covers machines and materials. This is the hardest part of the chip supply chain. Fabs need ultra-pure chemicals, blank silicon wafers, and rare gases like neon or argon. The government wants at least five specialized chemical and gas companies to set up shop in India. Without them, a local fab still relies on imported raw materials.
Semicon 2.0 vs Semicon 1.0: Key Changes in India's Chip Strategy
The first phase of this policy, Semicon 1.0, launched in December 2021. It had a budget of ₹76,000 crore. The goal was simply to get the first few factories off the ground. It worked. The government notes that five out of 12 approved projects are already in commercial production as of October 2026.
Semicon 2.0 is much larger. Approved in July 2026, it bumps the budget to ₹1,27,500 crore. The focus shifts from just building basic factories to creating an entire ecosystem. You cannot just build a chip; you must train the talent, mine the gas, build the packaging, and fund the research.
| Policy Metric | Semicon 1.0 (2021) | Semicon 2.0 (2026) |
|---|---|---|
| Total Fiscal Outlay | ₹76,000 Crore | ₹1,27,500 Crore |
| Primary Core Focus | Initial Fabs & ATMP Units | Complete Ecosystem (Machines, Materials, Fabs) |
| Talent & Research | Basic design support | Deep R&D and massive university training |
The Separate Push: 12 New ECMS Projects Approved
While silicon chips get the headlines, basic electronics components keep the economy running. The Electronics Components Manufacturing Scheme (ECMS) is a distinct ₹40,000 crore program. It funds the companies that make circuit boards, relays, and battery parts. Without these items, a microchip has nothing to plug into.
On November 6, the government cleared 12 new applications under this scheme. These approvals cover a projected investment of ₹7,503 crore. Over time, these 12 factories are expected to produce goods worth ₹39,045 crore. They will directly employ an estimated 7,127 people across seven states.
The approvals are split into three areas: electronic components, supply-chain products, and capital equipment. NeST ICELR Private Limited will make multi-layer printed circuit boards (PCBs). Modern Automotives Limited will build heat sinks to keep electronics cool. TDConnex (Chennai) Private Limited will make precision molds and tooling gear.
"Nearly 50% of the units approved under the ECMS scheme belong to the SME and MSME segments, ensuring growth reaches smaller players." — Ministry of Electronics and IT (MeitY) Factsheet
The Critical Link to Electric Vehicles (EVs)
A closer look at the ECMS list reveals a massive push toward electric vehicle batteries. The scheme approved TACC Limited to make anode materials for lithium-ion cells. Vidyuta Materials Private Limited won approval for cathode active materials. Indo Asia Copper Limited will manufacture copper foil, a key battery component.
These parts are the building blocks of EV batteries. By funding them through ECMS, India is actively cutting its reliance on imported battery cells. This kind of deep supply-chain control is what advanced manufacturing looks like. It is exactly the kind of industrial automation that helped Coforge deploy smart Grok AI systems in modern factories.
The News4Bharat POV
The timing of these twin announcements is not an accident. Global tech giants are actively hunting for a "China Plus One" manufacturing base. The US CHIPS Act triggered a massive shift in how countries view technology. Semiconductors are no longer just business products; they are national security assets.
However, the Indian government made a firm warning during the portal launch. They will only accept complete, serious applications. In the past, some companies filed empty "placeholder" applications to grab a spot in line without securing real funding or technology partners. Semicon 2.0 requires a robust Detailed Project Report (DPR). If a company does not have the cash and the science ready, the portal will reject them.
Securing this cash often requires foreign partnerships or deep institutional loans. While traditional sectors face strict limits—like the 49 percent foreign investment cap in PSU banks—the technology and manufacturing sectors offer far more open routes for global capital to enter India.
For the smaller players in the ECMS scheme, domestic banking support is vital. Local parts makers rely heavily on mid-tier lenders. Institutions like Equitas Small Finance Bank play a huge role in funding MSME vendors who supply the larger tech factories.
What to Watch Next for Investors and Manufacturers
For businesses ready to build, the action starts now. Companies looking to build chip fabs or packaging plants must apply through the India Semiconductor Mission portal. Those looking to manufacture general electronics parts should track the ECMS dashboard.
Analysts must carefully track the difference between "approved projected investment" and actual money hitting the ground. The latest ECMS approvals take the cumulative expected investment to ₹77,051 crore across 118 projects. However, it often takes two to four years for a factory to go from an approval letter to rolling out final products. You can track the official claims via the Press Information Bureau releases.
The true success of Semicon 2.0 will be measured by Pillar 2. If India can attract global leaders in high-purity chemical and gas supplies, the ecosystem will survive. If not, local fabs will always remain vulnerable to global shipping delays.
Frequently Asked Questions (FAQs)
Quick answers about the new tech portals and government manufacturing schemes.
What is the Semicon 2.0 portal?
It is an online application gateway for the ₹1,27,500 crore India Semiconductor Mission. Companies use it to apply for government funding to build chip fabs, packaging plants, and raw material factories.
How is ECMS different from Semicon 2.0?
Semicon 2.0 focuses strictly on silicon chips and microprocessors. The ECMS is a separate ₹40,000 crore scheme that funds basic electronic parts like circuit boards, battery materials, and relays.
What are ATMP and OSAT facilities?
These are highly advanced factories that test, cut, and package silicon chips after they are printed. Packaging protects the chip and connects it to the main device circuit board.
Can startups apply for Semicon 2.0?
The newly launched portal targets large-scale manufacturing (Fabs, Materials). Chip design startups fall under Pillar 1, which uses a different Design Linked Incentive (DLI) application process.
Are the 12 new ECMS projects guaranteed to succeed?
The ₹7,503 crore figure is a projected investment. The companies have received official government approval, but they must now physically build the factories and hit production targets to receive incentives.
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