India Semiconductor Mission 2.0 Cleared With ₹1.25 Lakh Crore Allocation

The Expenditure Finance Committee has officially cleared the proposal for India Semiconductor Mission (ISM) 2.0, allocating a substantial ₹1.25 lakh crore (US$ 13.21 billion). This represents a significant escalation from the ₹76,000 crore provided under the initial ISM 1.0. The expanded mission is designed to build a comprehensive, end-to-end semiconductor ecosystem, covering everything from raw materials and chip design to advanced manufacturing and resilient supply chains.

The mission is already yielding tangible results, with two semiconductor manufacturing projects having commenced commercial production. A major upcoming milestone is the launch of operations by CG Semi Private Limited on July 4, 2026. This follows the successful unveiling of India's first end-to-end OSAT facility in Gujarat in August 2025. With a second facility currently under construction, the total production capacity is projected to reach 145 lakh chips per day by the end of 2026.

ISM 2.0 focuses on fostering indigenous intellectual property and equipment manufacturing, reducing reliance on global imports. By creating a robust domestic supply chain, the government aims to position India as a global hub for semiconductor assembly, testing, and manufacturing. This strategic investment is expected to attract further private sector participation, ensuring that India remains competitive in the global semiconductor market while securing its technological sovereignty for the coming decade.