India expects 200 chip design firms from Semicon 2.0

The government's Rs 1.27 lakh crore semiconductor scheme aims to transform India into a major chip design hub.

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Sep 18, 2026

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India expects 200 chip design firms from Semicon 2.0

The government's Rs 1.27 lakh crore semiconductor scheme aims to transform India into a major chip design hub.

In brief

The government's Rs 1.27 lakh crore semiconductor scheme aims to transform India into a major chip design hub. India's Semicon 2.0 scheme is expected to create 200 chip design companies, building on IT industry strengths to develop semiconductor capabilities. Originally reported by The Economic Times.

200 chip design firms expected

India's Rs 1.27 lakh crore Semicon 2.0 scheme is projected to create around 200 chip design companies, which the government calls a game changer.

Building on IT industry strength

The country's design capability from its IT industry and global capability centers is now extending into the semiconductor sector.

First phase supported 105 startups

Semicon 1.0 gave over 105 chip design startups access to expensive EDA tools, while 20 startups received venture capital funding.

Global engineers joining the effort

The sector's progress has encouraged greater participation from larger companies and Indian-origin engineers working globally.

Multiple countries backing expansion

Seven countries held roundtables at Semicon India 2026, with their governments supporting companies to expand work in India.

“The country roundtables are basically showing that companies from those countries can expand their work here.”

Japan and Singapore lead participation

Japan and Singapore brought 30-plus companies each to their pavilions, showing strong international interest in India's semiconductor push.

Water concerns being addressed

Most semiconductor and data center companies will use closed-loop systems that recycle water throughout the thermal cycle rather than consuming large quantities.

Here's the gist

India's Semicon 2.0 scheme is expected to create 200 chip design companies, building on IT industry strengths to develop semiconductor capabilities.

Read the original on The Economic Times

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