Cabinet approves India Semiconductor Mission 2.0 with outlay of US$ 13.25 billion
- IBEF
- July 16, 2026
The Union Cabinet, chaired by Prime Minister Mr. Narendra Modi, has approved India Semiconductor Mission (ISM) 2.0 with a budgetary outlay of Rs. 1.28 lakh crore (US$ 13.25 billion) to strengthen the country’s semiconductor design and manufacturing ecosystem. The Cabinet also approved the Mobile Phone Manufacturing Scheme (MPMS) with an allocation of Rs. 62,500 crore (US$ 6.49 billion) as part of a broader package of decisions worth Rs. 2.19 lakh crore (US$ 22.76 billion). The mission aims to build on the progress of Semicon 1.0 and position India as a global hub for semiconductor manufacturing and innovation.
India Semiconductor Mission 2.0 is structured around six pillars covering chip design, semiconductor equipment and materials, fabrication units, Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT), research and development, and talent development. Under Semicon 1.0, the Government approved 12 manufacturing projects with cumulative investments exceeding Rs. 1.64 lakh crore (US$ 17.07 billion), including semiconductor fabrication and packaging facilities. Additionally, 105 startups and MSMEs have been supported with Electronic Design Automation (EDA) tools, while 315 universities have trained around 68,000 students in semiconductor design, laying the foundation for a robust domestic semiconductor ecosystem.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
