(MENAFN- KNN India) New Delhi, Aug 23 (KNN) The Ministry of Electronics and Information Technology (MeitY) has initiated discussions with the Finance Ministry regarding Semicon 2.0, the next phase of India's Semiconductor Programme, according to Secretary S. Krishnan during a recent press briefing.

Krishnan announced that ten projects have received approval under India's Semiconductor Mission, with the country poised to produce its first domestically manufactured semiconductor chip this year.

This milestone represents a significant step forward in India's efforts to establish itself as a key player in the global semiconductor manufacturing landscape.

The initial phase of the programme, known as Semicon 1.0, has a total allocation of Rs 75,000 crore, which has been "almost fully committed" to approved projects.

The funding distribution includes Rs 64,000 crore designated for chip fabrication facilities, Rs 10,000 crore allocated to the Semiconductor Lab in Mohali, and Rs 1,000 crore earmarked for the Design-Linked Incentive scheme.

The secretary indicated that remaining funds from the first phase could potentially support two to three additional smaller projects. This suggests that the current programme has achieved significant uptake among industry participants and investors.

Addressing concerns about potential trade implications, Krishnan discussed the impact of US tariffs on India's electronics sector.

He noted that the sector currently operates under what appears to be a zero-tariff regime for electronics, though he emphasised the need for greater clarity on future trade policies.

The secretary observed that stakeholders with investments in India generally do not anticipate substantial negative effects from potential tariff changes.

(KNN Bureau)

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