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Semicon portal opens applications for chip factories, equipment and packaging

First brief 7 Nov, 3:17 pm IST Updated 7 Nov, 3:17 pm IST 0 developments 2 min read
Semiconductor wafer processing; file photo
Purdue Engineering · CC BY 4.0

Where it stands

Companies can now apply under three parts of India’s Semicon 2.0 programme covering chip-production facilities and their supporting industries. The application portal opened on 6 November 2026. It covers machines and materials, additional chip factories, and assembly, testing and packaging. The aim is to build more of the production chain within India. A chip factory needs specialised machines and materials to manufacture circuits. After fabrication, the chips must be tested and packaged so other devices can use them. Supporting these stages together can strengthen the wider manufacturing base. The government also approved 12 additional projects under the separate Electronics Components Manufacturing Scheme. Their projected investment is ₹7,503 crore, with 7,127 expected direct jobs. These figures describe planned projects and employment, rather than factories already producing or jobs already filled.

Background

A finished electronic device combines chips with many other components. Making the chip itself also involves several stages. Engineers design the circuit, a fabrication plant manufactures it, and later facilities assemble, test and package it. A thin disc called a wafer provides the surface on which a factory makes many circuits. The fabrication plant is often called a fab. It depends on highly specialised equipment, chemicals, gases and materials. A country seeking chip-manufacturing capacity therefore needs more than one kind of factory. Suppliers and later processing facilities support the operation of the chip-production line. Semicon 2.0 has six pillars, covering design, machines and materials, fabs, packaging, research and talent development. The newly opened portal accepts applications for machines and materials, more fabs, and the packaging-related pillar. This gives companies a route to submit projects for consideration under those parts of the programme. The Electronics Components Manufacturing Scheme addresses a wider set of electronics inputs. The latest approvals include products such as printed circuit boards, copper foil and specialty ceramics. Keeping the two schemes distinct helps explain which production stage each announcement supports.

How it developed

  1. 6 November 2026
    How it started

    Applications open under three pillars as component projects gain approval

    The Semicon portal is open for Pillar II on machines and materials and Pillar III on more fabs. Pillar IV covers packaging-related industry. The six-pillar programme also includes chip design, research and talent development. The separate component-project approvals cover seven states: Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh. The ministry projects production worth ₹39,045 crore from these 12 projects. Copper foil, cathode active material and specialty ceramics receive their first approvals under that scheme.

Why it matters for UPSC

GS3 · Industrial policyGS3 · Science and technology

For GS3, explain the difference between electronic-device assembly, chip fabrication and chip packaging. Connect industrial incentives with suppliers, technological capability and the stages between project approval and production.

Key terms

Semiconductor chipA small electronic component containing circuits that perform functions such as processing or controlling electrical signals. Producing it requires design, fabrication and later testing and packaging. Those stages need different skills and facilities.
Fabrication plantA factory that manufactures semiconductor circuits on wafers using specialised equipment and materials. It is commonly called a fab. The new portal accepts applications for additional fabs as one of its three open programme pillars.
Chip packagingThe stage that prepares a fabricated chip for use in an electronic system, including protection and electrical connections. Assembly and testing are closely linked parts of this production chain. India’s application portal includes the packaging-related industry.
Electronics Components Manufacturing SchemeA government scheme supporting manufacturing of specified electronics components, supply-chain products and related capital goods. The latest announcement approves 12 additional projects. Their investment, production and employment figures are projections.
Printed circuit boardA board containing conductive paths that connect electronic components. It helps those components work together inside a device. Multilayer boards are among the products covered by the new component-manufacturing approvals.
Projected investmentThe investment expected for an approved or planned project. It describes the proposed scale before the project is fully implemented. The latest component approvals carry a combined projected investment of ₹7,503 crore.
Sources (2)
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