Finance ministry panel clears Rs 1.25 lakh crore for India Semiconductor Mission 2.0; Cabinet nod next
The Expenditure Finance Committee (EFC) under the Finance Ministry has cleared a proposal for a Rs 1.25 lakh crore outlay under India Semiconductor Mission (ISM) 2.0, marking a major step in the country’s efforts to strengthen domestic chip manufacturing and build a comprehensive semiconductor ecosystem, sources told PTI.The proposal, which will now be placed before the Union Cabinet for approval, is significantly higher than the Rs 76,000 crore allocated under the first phase of the India Semiconductor Mission.The Union Budget for 2026-27 had announced India Semiconductor Mission 2.0 to deepen the country’s semiconductor manufacturing capabilities by supporting equipment, materials, indigenous chip designs and other critical components of the value chain.The government has said ISM 2.0 reflects India’s commitment to building resilient semiconductor supply chains while promoting semiconductor equipment manufacturing, materials, indigenous intellectual property and chip design.Union Electronics and IT minister Ashwini Vaishnaw had earlier said the second phase of the mission would focus on indigenous chip design, productisation, attracting ecosystem partners and talent development.Under the India Semiconductor Mission, the government has approved 12 semiconductor manufacturing projects involving investments of around Rs 1.64 lakh crore. These include one semiconductor fabrication unit, two compound semiconductor fabrication units and nine semiconductor packaging units.On the design front, 24 projects are being supported under the Design Linked Incentive (DLI) Scheme, while 105 companies have received access to advanced chip design tools. So far, 23 chip tapeouts have been completed at various foundries, including advanced technology nodes, reflecting India’s growing semiconductor design capabilities.Calling semiconductor manufacturing a long-standing national ambition, a senior IT Ministry official said two approved semiconductor projects have already been inaugurated for commercial production.“CG Semi’s inauguration is scheduled for July 4…and then probably one or two more (will happen) before the end of this calendar year, so our dream of having commercial semiconductor manufacturing in the country has finally been achieved,” the official told news agency PTI, adding that more semiconductor projects are expected to be announced.The official added that India has emerged as an important player in the global technology ecosystem and is increasingly becoming “a voice to reckon with” in setting technology standards.
