Semicon 2.0, MPMS could create over 3.6 lakh jobs: Industry
New Delhi, July 16
Recent Cabinet approvals for the Semicon 2.0 and the Mobile Phone Manufacturing Scheme mark a shift from assembly‑led growth to building a full semiconductor value chain and could collectively create over 3.6 lakh jobs, industry bodies have said.
Semicon 2.0 could attract $40-50 billion in fresh investment and create 2-3 lakh high‑skilled jobs, while MPMS could nearly double cumulative production to about Rs 39 lakh crore and cumulative exports to about Rs 15 lakh crore, while creating 60,000 additional direct jobs.
Semicon 2.0 and MPMS committed Rs 1,27,500 crore and Rs 62,500 crore respectively and industry bodies lauded the schemes for significantly enhancing domestic value addition.
IESA said that Phase 1 had already helped secure more than $20 billion in announced semiconductor projects and that Phase 2's greater emphasis on fabs, advanced packaging, design, R&D, talent, equipment and materials aims to make India a trusted global partner.
"With several OSAT projects already under implementation and entering production, Phase 2 rightly places greater emphasis on semiconductor fabs, while continuing strong support for advanced packaging, thereby creating a balanced and future-ready semiconductor ecosystem," the statement said.
"SEMICON 2.0 marks a decisive step in India's journey from policy intent to execution at scale. Phase 1 established India's credibility and phase 2 will build long-term capability," said Ashok Chandak, President, IESA and SEMI India.
With worldwide semiconductor manufacturing equipment spending expected to grow to nearly $230 billion by 2028, the policy positions India to capture the next wave of global investments in semiconductor manufacturing, advanced packaging, equipment and materials, Chandak added.
Pankaj Mohindroo, Chairman, ICEA, welcomed policy continuity and said ISM 2.0's focus on design, R&D, capital goods and skills will help India become a skill capital for the semiconductor industry.
"ISM 2.0 can bring together manufacturing, supply chain, innovation and human capital to build a globally competitive semiconductor ecosystem," he said.
"The approval of the Mobile Phone Manufacturing Scheme (MPMS) is a landmark policy intervention that will build on the success of the PLI programme and accelerate India's transition from a mobile assembly hub to a globally competitive manufacturing and innovation powerhouse," said Ashok Gupta, Chairman, Optiemus Electronics Limited (OEL).
It provides long-term policy certainty for fresh investments, and fosters indigenous technology development, thus positioning India as a preferred global destination for advanced mobile phone manufacturing, Gupta added.
— IANS
Reader Comments
The emphasis on R&D and design in this phase is very encouraging. For too long, our brightest engineers were doing only grunt work for global firms. If we can build a true semiconductor ecosystem with fabs and advanced packaging, India could become a proper global partner. The $40-50 billion investment target is ambitious, but with global capex set to hit $230 billion by 2028, this is our chance to grab a big slice of the pie.
Sounds great in press releases, but let's not count our chickens before they hatch. The mobile PLI schemes have had a mixed track record in terms of actual job creation vs. imports of components. I'm cautiously optimistic about MPMS, but we need to see genuine domestic value addition, not just assembling imported parts at scale. The 60,000 direct jobs number seems conservative compared to the hype, but I'll take it if it's real.
What excites me most is the "skill capital" angle. We have the talent pool, but we were losing it to design houses abroad. If Semicon 2.0 truly builds the ecosystem for design, advanced packaging, and equipment, we can retain that talent here and perhaps even attract NRIs back. The Rs 1,27,500 crore commitment is serious money—let's hope the industry delivers on the job promises. Jai Hind! ✨
My only concern is the timeline. These $40-50 billion investments and lakhs of jobs sound great, but semiconductor fabs take years to build. We need to ensure the policy certainty lasts beyond this government term. Also, I hope the focus isn't just on large players—we need to support startups and MSMEs in the semiconductor design space. That's where the real innovation and job multipliers happen.
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