Semicon 2.0: India pushes to build the chips powering its defence future

The government has notified the ambitious Semicon 2.0 scheme on August 31, 2026, with an outlay of ₹1.275 lakh crore. The programme seeks to expand India's semiconductor ambitions beyond manufacturing by supporting the entire ecosystem, including chip design, equipment, materials, advanced packaging, research and skilled manpower. Modern drones, missiles, surveillance systems and other military platforms increasingly depend on sophisticated semiconductors and sensors for navigation, processing, targeting and autonomous functions. India has developed considerable expertise in integrating complex systems, but the need is to strengthen its ability to develop critical chips, sensors and components. The next-generation defence systems rely on these chips. Rajendra Chodankar, Chairman and CEO of RRP Group of Companies, said India is making some bold steps by expanding the semiconductor programme. He believes Semicon 2.0 promises wider coverage of equipment, materials, training and skills, helping create a broader domestic ecosystem. Chodankar also pointed out that sensors are particularly strategic for India's defence sector. The next priority for India is to have its own fabs, or fabrication plants, for critical technologies at the component level. This could help build the technological foundation for a more self-reliant generation of intelligent weapons and military systems.