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Incentives · 31 August 2026

Semicon 2.0 notified with 40% fab support; open for three years

India Semiconductor Mission 2.0, approved on 15 July 2026 with ₹1.275 lakh crore, was notified on 31 August 2026 and is open for applications for three years.

Effective or announced 31 August 2026Impact for foreign investors: high

What changed

Semicon 2.0 covers design, equipment, materials, fabs, ATMP/OSAT, and R&D and talent. Support is 40% of eligible capex for silicon fabs, 35% for compound, sensor and discrete fabs and advanced packaging, 25% for legacy packaging and 30% for equipment and component makers. Minimum tests apply, for example ₹20,000 crore and 40,000 wafer starts a month for silicon fabs. Design support is limited to Indian-owned and controlled companies.

Who it affects

Semiconductor, equipment, materials and gas suppliers considering Indian manufacturing.

What to do

Check the minimum investment and capacity tests and ownership conditions, and file before committing capital.

Planning your move into India?

Talk to IMC about your entry structure, approvals, incentives, tax and the first year of compliance.

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