Cabinet Greenlights ₹1.27 Lakh Crore Semicon 2.0 to Boost Indigenous Chip Production
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved ₹1.27 lakh crore for the second edition of the India Semiconductor Mission (ISM 2.0), IT Minister Ashwini Vaishnaw announced on Wednesday. The government expects the new scheme to attract investments worth approximately ₹4 lakh crore and generate semiconductor production valued at ₹2 lakh crore during the program period.
ISM 2.0 aims to strengthen India's semiconductor design and manufacturing ecosystem. The scheme covers the entire value chain, including incentives for suppliers of raw materials such as minerals and gases. The program is structured around six pillars, with the first focusing on chip design, the Minister said.
“We will be self-reliant in the production of indigenous chips by the end of this programme,” Vaishnaw stated, emphasizing the government's commitment to reducing dependence on imports.
The first edition of the India Semiconductor Mission (ISM 1.0) had an outlay of ₹76,000 crore. Under ISM 1.0, the government approved 12 projects with cumulative investments of around ₹1.64 lakh crore, with the majority coming from domestic technology firm Tata Electronics and its semiconductor arm.
The new scheme comes at a time of global memory chip shortage, as companies worldwide work to enhance production capacity. ISM 2.0 is also expected to attract investment in chip segments for artificial intelligence devices.
