Finance Panel Clears ₹1.25 Lakh Crore for India Semiconductor Mission 2.0
The Expenditure Finance Committee (EFC) under the Union Finance Ministry has approved a Budget proposal allocating ₹1.25 lakh crore for the India Semiconductor Mission (ISM) 2.0, according to official sources. This marks a substantial increase from the ₹76,000 crore outlay for ISM 1.0, underscoring the government's commitment to advancing domestic chip manufacturing.
The proposal, once cleared by the EFC, will now be placed before the Union Cabinet for final approval. The allocation is part of the Union Budget 2026-27, which announced the second phase of the mission with a broader objective to promote a comprehensive semiconductor ecosystem in India, covering equipment, materials, indigenous designs, and resilient supply chains.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw previously stated that ISM 2.0 will prioritise indigenous chip design, productisation, attracting ecosystem partners, and talent development. The mission aims to cement India's position as a global semiconductor hub.
Under the India Semiconductor Mission so far, 12 semiconductor manufacturing projects have been approved with an investment pipeline of approximately ₹1.64 lakh crore. These include one semiconductor fabrication unit, two compound semiconductor fabrication units, and nine packaging units. On the design front, 24 projects are supported under the Design Linked Incentive (DLI) Scheme, 105 companies have received advanced chip design tools, and 23 design 'tapeouts' have been completed at various foundries, including at advanced nodes.
A senior IT Ministry official highlighted that two of the approved projects have already begun commercial manufacture earlier this year, and another — CG Semi — is scheduled for inauguration on July 4. The official noted, 'Our dream of having commercial semiconductor manufacturing in the country has finally been achieved,' and added that more projects are expected by the end of the calendar year.
The official further stated that India has emerged as a key player in the global technology landscape and 'a voice to reckon with' on standards. The increased outlay for ISM 2.0 reflects India's deepening commitment to semiconductor manufacturing and its ambition to become a reliable partner in global supply chains.
