The Union Cabinet’s clearance of Semicon 2.0 represents India’s first adoption of a full ecosystem strategy for semiconductors, stated HCL co-founder Ajai Chowdhry. In remarks released on Wednesday, he endorsed the approvals for Semicon 2.0 and the Mobile Phone Manufacturing Scheme, noting these steps would bolster the nation’s semiconductor and electronics production base. Chowdhry observed that the measures align with the complete ecosystem vision long promoted by the EPIC Foundation, encompassing chip design, fabrication, assembly, testing, packaging, research, workforce development, local technologies and materials. He praised the sustained policy direction from Prime Minister Narendra Modi and Union Minister Ashwini Vaishnaw. The Cabinet allocated Rs 1,27,500 crore to Semicon 2.0 and Rs 62,500 crore to the mobile scheme within a larger package totaling Rs 2,19,353 crore. Chowdhry highlighted the emphasis on design and research as the most notable feature, describing chip design as essential for a robust, self-reliant industry. He welcomed targeted incentives for Indian companies in these areas to address prior shortfalls relative to international rivals. The mobile manufacturing scheme was also praised for offering continuity to existing investors and promoting greater local content through sourcing incentives. Chowdhry further noted the increased financial commitment, with Semicon funding rising from Rs 75,000 crore to Rs 1,25,000 crore, signaling enduring government support. He added that numerous facilities have already been established under the prior programme over the last three years.
