Government Launches India Semiconductor Mission 2.0 With ₹1.28 Lakh Crore Outlay

The Union Cabinet, led by Prime Minister Narendra Modi, has officially approved the India Semiconductor Mission 2.0, allocating a substantial budgetary outlay of ₹1.28 lakh crore. This initiative expands upon the initial Semicon India Programme, which successfully approved 12 manufacturing projects with investments exceeding ₹1.64 lakh crore. The mission aims to solidify India's global status by focusing on six strategic pillars: advanced packaging, fabrication units, chip design, semiconductor materials, research and development, and talent cultivation.

Semicon 2.0 introduces a targeted strategy, including matching venture capital funding for eligible chip design startups to foster indigenous intellectual property. However, the government has set strict fiscal boundaries; the Centre will not cover land acquisition or technology transfer costs. This decision is designed to ensure long-term commitment and financial discipline among private participants, shifting the burden toward companies to prove commercial viability while receiving support for high-tech innovation.

With companies like Micron and CG Power already having commenced commercial production, the government intends to scale its efforts to reduce import dependency. The alignment of these incentives with broader mobile manufacturing schemes, which received an additional ₹62,500 crore outlay, aims to create a robust foundation for domestic hardware production. Stakeholders expect this initiative to attract significant private capital, accelerate the creation of home-grown chip technology, and establish India as a vital cog in the global semiconductor supply chain.