India Broadens Semiconductor Strategy With ₹1.27 Lakh Crore India Semiconductor Mission 2.0

The Union Cabinet has approved the India Semiconductor Mission 2.0, allocating ₹1.27 lakh crore to accelerate the development of a resilient semiconductor ecosystem. This second phase of the Semicon India Programme marks a strategic shift from merely attracting fabrication and packaging investments to a comprehensive, end-to-end approach. The mission aims to position India as a global leader in chip design and intellectual property ownership, targeting self-reliance for 70-75% of domestic chip applications by 2029.

ISM 2.0 is structured around six core pillars: chip design and IP ownership, commercial silicon and compound semiconductor fabrication, advanced packaging, upstream equipment and materials, research and development, and talent pipeline development. By focusing on these areas, the government intends to build a robust value chain that can support both domestic needs and global demand. The program has already seen early success, with 24 design projects receiving financial assistance and over 100 startups gaining access to essential design tools.

The ultimate goal of this mission is to establish India as a top global chip country by 2035. By fostering a culture of innovation and providing the necessary infrastructure for startups and MSMEs, the government is creating a foundation for long-term technological sovereignty. As the mission progresses, the focus will remain on scaling production capabilities and ensuring that the domestic talent pool is equipped to handle the complexities of modern semiconductor manufacturing and design.