India Semiconductor Mission 2.0 Cleared With Rs 1.25 Lakh Crore Allocation

The Expenditure Finance Committee has cleared the proposal for India Semiconductor Mission (ISM) 2.0, allocating a substantial Rs 1.25 lakh crore to bolster domestic chip manufacturing. This funding represents a significant increase over the Rs 76,000 crore provided in the first phase. The initiative is now awaiting final Cabinet approval and aims to create a comprehensive ecosystem covering everything from raw materials and indigenous intellectual property to advanced chip design and packaging.

Union Minister Ashwini Vaishnaw emphasized that ISM 2.0 will prioritize the development of indigenous chip design and talent cultivation. By attracting global ecosystem partners, the mission seeks to integrate India more deeply into the global semiconductor value chain. The focus is not merely on manufacturing but on building a resilient supply chain that can support the growing demand for electronics and high-tech hardware within the country.

The first phase of the mission has already seen significant success, with 12 projects approved and an investment pipeline of Rs 1.64 lakh crore. These projects include a mix of fabrication and packaging units, two of which have already commenced commercial production. With additional projects scheduled to go live later this year, the government is accelerating its efforts to establish India as a global semiconductor hub, ensuring that the country remains competitive in the rapidly evolving global technology landscape.