India's Semicon 2.0 programme has dedicated a full pillar to semiconductor research and development, funding industry-led research centres at IITs and NITs focused on next-generation chip architectures, process technology, compound semiconductors, and packaging innovation, with a Rs 1,000 crore initial outlay for FY2026-27 to establish India as a global hub for applied semiconductor research.
Semicon Hunt -> technology -> India Semiconductor Mission
2026-09-01
The fifth of Semicon 2.0's six structural pillars is dedicated to research and development in semiconductor science and technology, recognising that India's long-term chip competitiveness depends on building indigenous innovation capability rather than perpetually importing foreign technology. The R&D pillar is structured around industry-led research centres co-located at premier academic institutions including IITs, NITs, and DRDO labs, where semiconductor companies co-fund and co-direct applied research programmes aligned with their commercial technology roadmaps. This industry-academia co-investment model is modelled on the research consortia that have sustained semiconductor innovation in the United States through the SEMATECH tradition and in Europe through IMEC, adapted for India's institutional context.
The Semicon 2.0 R&D pillar targets several specific technology domains where India needs to build research capability. Process technology research, including next-generation materials, device architectures, and interconnect schemes for sub-10nm node development, is a priority given India's aspiration to eventually manufacture at advanced nodes. Compound semiconductor materials science, covering silicon carbide crystal growth, gallium nitride epitaxy, and III-V device fabrication, is targeted to support India's power electronics and RF semiconductor ambitions. Advanced packaging research, including heterogeneous integration, chiplet architectures, and thermal management for high-density packages, is prioritised because packaging innovation is increasingly a source of commercial differentiation in the semiconductor industry. Semiconductor reliability and qualification testing methodologies for automotive, aerospace, and defence applications round out the priority research areas.
The R&D centres established under Semicon 2.0 operate on a co-investment model where the government provides capital for laboratory infrastructure, equipment, and faculty positions, while industry partners contribute research programme funding, access to proprietary process data, and guaranteed pathways for research graduates into employment. This structure ensures that the research agenda is commercially relevant rather than purely academic, addressing a historical criticism of India's technology research that it has been too disconnected from industry needs to generate commercially deployable innovations. Companies participating as research partners in Semicon 2.0 R&D centres receive IP sharing arrangements that allow them to commercialise research outputs through their product lines, creating financial incentives for sustained industry engagement beyond the initial programme period.
Semicon 2.0's R&D pillar includes provisions for international research collaboration, recognising that India's semiconductor research community will develop faster through engagement with established global research institutions than through isolated domestic effort. Memoranda of understanding with IMEC in Belgium, Fraunhofer IPMS in Germany, and AIST in Japan are being explored to establish joint research programmes that give Indian researchers access to world-class process and characterisation infrastructure while providing international partners with access to India's engineering talent for collaborative projects. These international linkages also create pathways for Indian researchers who train at international centres to return to India with practical knowledge of advanced fabrication processes, seeding the country's own research infrastructure with world-class expertise.
The ultimate ambition of Semicon 2.0's R&D pillar is to position India as a globally recognised hub for semiconductor research, alongside Taiwan, Belgium, Japan, and the United States. India's engineering talent density and cost structure give it a compelling value proposition for hosting research programmes that are too expensive to pursue exclusively in high-cost research environments. If the R&D pillar succeeds in creating a cluster of internationally connected, industry-funded research centres across India's engineering college network, it could attract global semiconductor companies to locate their exploratory research programmes in India, adding a research and innovation dimension to India's semiconductor value proposition that goes well beyond the cost and scale advantages that have historically defined India's technology sector appeal.
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