Semicon 2.0 adopts complete semiconductor ecosystem approach for first time: HCL co-founder Ajai Chowdhry
New Delhi, July 15
The Union Cabinet's approval of Semicon 2.0 marks the first time that India has adopted a complete ecosystem approach for the semiconductor sector, according to HCL co-founder Ajai Chowdhry.
In a statement issued on Wednesday, Chowdhry welcomed the Cabinet's approval of Semicon 2.0 and the Mobile Phone Manufacturing Scheme (MPMS), saying the new initiatives would strengthen India's semiconductor and electronics manufacturing ecosystem.
"This is exactly what we at EPIC Foundation have envisioned for India's semiconductor journey- a complete ecosystem approach to semiconductors and I am delighted to see it take shape today. This is the first time a complete ecosystem approach has been adopted, covering all six pillars of the value chain - from chip design and fabrication to assembly, testing and packaging, R&D, Talent, indigenous technologies and materials," Chowdhry said.
He also complimented Prime Minister Narendra Modi and Union Minister Ashwini Vaishnaw for what he described as their sustained vision behind the initiative.
The Union Cabinet on Wednesday approved Semicon 2.0 with an outlay of Rs 1,27,500 crore and the Mobile Phone Manufacturing Scheme (MPMS) with an allocation of Rs 62,500 crore as part of a broader package of seven major decisions with a total outlay of Rs 2,19,353 crore.
According to Chowdhry, one of the biggest strengths of Semicon 2.0 is its focus on design and research and development, particularly chip design.
"What stands out most in today's announcement is the strong emphasis on design and R&D, particularly chip design, which is the foundation on which a resilient and self-reliant semiconductor ecosystem must be built."
He said there is also a clear direction from the government to incentivise design and R&D for Indian brands, which, according to him, have lagged behind competitors for several years.
"There is a very clear direction from the government to incentivise design and R&D for Indian brands, which have been left behind for years and overtaken by Chinese competitors. This is a decisive step towards correcting that imbalance," he said.
Chowdhry also welcomed the approval of the Mobile Phone Manufacturing Scheme (MPMS), which has been cleared with an outlay of Rs 62,500 crore over five years.
He said the scheme would provide continuity to companies that have already invested in India while encouraging higher domestic value addition.
"The Mobile Phone Manufacturing Scheme (MPMS) will provide much-needed continuity to the units that have already invested in the country. However, what is the most interesting part is that there will be special incentives for domestic sourcing which will lead to much higher value addition," he said.
The HCL founder further said the government has demonstrated its long-term commitment to the semiconductor sector by significantly increasing the programme's financial support.
"The government has also demonstrated its long-term commitment to the sector by dramatically increasing the Semicon outlay from Rs 75,000 crore to Rs 1.25 lakh crore. This scale of investment reflects a serious and sustained commitment to building a globally competitive semiconductor industry in India," he said.
Referring to the progress made under the earlier semiconductor programme, Chowdhry said India has already established a large number of units over the last three years.
— ANI
Reader Comments
Rs 1.27 lakh crore for Semicon 2.0 and Rs 62,500 crore for mobile manufacturing? That's serious money! But I hope it's not just another subsidy scheme that benefits a few big players. Small and medium enterprises in electronics need support too. Let's see the fine print.
Ajai Chowdhry is absolutely right! The focus on chip design and R&D is crucial. We have brilliant Indian engineers designing chips for global companies abroad—we need to bring that talent and innovation back home. This could be India's moment in the semiconductor world. Well done, Modi ji and Vaishnaw ji! 👍
The MPMS scheme with incentives for domestic sourcing is a game-changer! For years, we've assembled phones in India but imported most components. This will push local value addition and create thousands of jobs. But I worry about the timeline—five years sounds short for such a complex industry.
Great move! But let's not forget the previous Semicon policy—it took years to see actual fabs coming up. India needs to speed up approvals, infrastructure, and ease of doing business. Otherwise, this Rs 1.27 lakh crore will just be another ambitious budget announcement. Hope we learn from past delays.
As an electronics engineer, this is music to my ears! The six pillars approach—chip design, fabrication, assembly, testing, R&D, talent, and materials—covers everything. But where's the mention of academic partnerships? We need IITs and NITs to align their curricula with this vision. Talent pipeline matters!
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.