Semicon 2.0 to focus on chip design, manufacturing equipment and materials ecosystem: Ashwini Vaishnaw - ET Manufacturing

India's semiconductor 2.0 strategy focuses on chip design, manufacturing equipment, and materials ecosystem development, aiming to establish a complete semiconductor supply chain and enhance global co... Read original →

India’s Semiconductor 2.0 marks a strategic pivot from fab subsidies to building an integrated tech ecosystem, targeting the design-equipment-materials triad. This will accelerate domestic EDA, photoresist, and wafer supply chains, yet near-term constraints from U.S.-Japan-Netherlands export controls on advanced tools could inflate fab costs by over 30%. TSMC or Samsung expansions in India would force localization of tier-2 suppliers, compelling global equipment vendors to reallocate support resources. Over the next 12–24 months, India will likely leverage ‘design outsourcing + materials pilots’ to attract Western R&D centers, but manufacturing scale won’t rival East Asia’s cluster dominance. Ultimately, this policy functions more as geopolitical hedging against U.S.-China decoupling than a genuine capacity alternative.