India’s semiconductor sector is expanding from its established base in chip design and engineering into fabrication, assembly, packaging, testing and the supply of specialised materials and equipment. This development brings together industrial investment, technology ownership and public support, with businesses participating through manufacturing projects, design services, proprietary products and technology licensing.
The legal framework protects different elements of semiconductor technology. The Patents Act, 1970 and the Patents Rules, 2003 govern protection for qualifying inventions involving devices, materials, manufacturing processes and related technologies.
The Semiconductor Integrated Circuits Layout-Design Act, 2000 provides a separate registration framework for eligible integrated circuit layouts. Software and other qualifying original works are protected under the Copyright Act, 1957, and contractual and confidentiality obligations govern access to proprietary designs, process information and technical know-how. These rights operate alongside the agreements through which technology is developed, licensed, transferred and manufactured.
Public policy supports the sector through the India Semiconductor Mission, the semiconductor and display manufacturing programme, design incentives and state-level assistance. Semicon 2.0 extends this framework across six pillars: design, machines and materials, fabrication, assembly and testing, research and development, and talent development. Related electronics-manufacturing and infrastructure programmes support other parts of the supply chain. Eligibility, financial assistance and disbursement are governed by the applicable scheme notifications, guidelines and approval conditions.
This booklet covers the semiconductor industry and its markets, India’s industrial capabilities, business models, opportunities and challenges, central and selected state policies, incentives and application procedures, startup support, research infrastructure and skills programmes. It also examines investment and regulatory requirements, patent protection and filing activity, integrated circuit layout-design registration, copyright, confidential information, IP ownership, licensing and technology transactions.
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