India's chip dreams get a US$ 13.21 billion push with Semiconductor Mission 2.0
- IBEF
- July 1, 2026
India has taken another major step towards building a globally competitive semiconductor industry, with the Expenditure Finance Committee clearing a proposal for India Semiconductor Mission (ISM) 2.0 with an allocation of Rs. 1.25 lakh crore (US$ 13.21 billion). The proposal, which is now awaiting Cabinet approval, represents a substantial increase over the Rs. 76,000 crore (US$ 8.03 billion) allocated under ISM 1.0. Announced in the Union Budget 2026-27, ISM 2.0 seeks to promote a comprehensive semiconductor ecosystem covering semiconductor equipment, materials, indigenous intellectual property, chip design, manufacturing and resilient supply chains. Union Minister for Electronics and IT Mr. Ashwini Vaishnaw has stated that the mission will prioritise indigenous chip design, productisation, talent development and attracting ecosystem partners to strengthen India's position in the global semiconductor value chain.
India's semiconductor ecosystem has already gained momentum under the first phase of the mission. The government has approved 12 semiconductor manufacturing projects involving an investment pipeline of about Rs. 1.64 lakh crore (US$ 17.33 billion), including one semiconductor fabrication unit, two compound semiconductor fabrication units and nine packaging units. On the design front, 24 projects are being supported under the Design Linked Incentive Scheme, while 105 companies have received advanced chip design tools and 23 tapeouts have been completed across various semiconductor manufacturing facilities. Two semiconductor manufacturing projects have already been inaugurated for commercial production, with CG Semi expected to be inaugurated on July 4, 2026, and additional projects scheduled to become operational later this year, marking significant progress towards establishing commercial semiconductor manufacturing in India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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