Finance panel clears ₹1.25 lakh crore for India Semiconductor Mission 2.0; Cabinet approval next

In the last budget, the government had sought to give a big boost to the country's manufacturing prowess announcing, among various measures, the second edition of India Semiconductor Mission with a broad objective to promote chip manufacturing ecosystem in the country covering equipment, materials, indigenous designs and other related components

The Budget, in February, had sought to give a big boost to the country’s manufacturing prowess announcing, among various measures

New Delhi: The Finance Ministry's Expenditure Finance Committee (EFC) has approved an outlay of Rs 1.25 lakh crore for the India Semiconductor Mission (ISM) 2.0, paving the way for the next phase of the country's semiconductor manufacturing push, according to a report in NDTV Profit. The proposal was cleared by the committee last week and will now be sent to the Union Cabinet for final approval.The proposed outlay marks a significant increase from the Rs 76,000 crore allocated as part of ISM 1.0, under which the government approved 10 semiconductor facilities across chip fabrication, assembly, and design.The expanded scheme is expected to support the wider ecosystem, including industrial gases, specialty chemicals, capital equipment, MSMEs, and ancillary suppliers, with the aim of strengthening India's semiconductor supply chain.Apple Accelerates iOS Security Updates Amid Rising AI-Driven Cybersecurity Threats The government expects the enhanced programme to help India meet up to 75 per cent of its domestic semiconductor demand by 2030, reducing import dependence and meeting the country’s target of becoming a global electronics manufacturing hub.The government has already carried out inter-ministerial consultations for the launch of the new scheme and the Ministry of Electronics and Information Technology was awaiting the Finance Ministry's clearance.India’s own consumption and production of electronics is expanding at an unprecedented pace. India today has over 65 crore smartphone users, and the electronics manufacturing output is touching Rs 12 lakh crore annually.'This Will Increase Scams': Internet Reacts To WhatsApp's New Username Reservation Feature At the same time, the country is also developing AI-based systems, data centres, and electric vehicles that require semiconductor chips. This surge in both demand and innovation makes it essential for India to secure its place in the global semiconductor value chain.Under the India Semiconductor Mission, 10 semiconductor plants have been approved. The construction work of the plants is progressing at a fast pace. A pilot production line in one of the units has already started in Gujarat's Sanand, and within a year, four more units are expected to go into production. Global leaders such as Applied Materials, Lam Research, Merck, and Linde are investing in supporting factories and supply chains.(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)

India's push for domestic chip manufacturing has received a significant boost with the Expenditure Finance Committee clearing a Rs 1.25 lakh crore outlay for India Semiconductor Mission 2.0. This ambitious plan, awaiting Union Cabinet approval, aims to bolster indigenous chip design, production, and the entire value chain, a substantial increase from the previous phase.

New Delhi: The expenditure department under the Finance Ministry has cleared a Budget proposal entailing an allocation of Rs 1.25 lakh crore for India Semiconductor Mission 2.0, as the country looks to advance global chip-making ambitions and cement its position as a semiconductor destination for the world, according to sources.The approval is significant as it is higher than the outlay of Rs 76,000 crore earmarked for ISM 1.0.Sources said that the Expenditure Finance Committee has greenlit the Rs 1.25 lakh crore outlay for ISM 2.0, and that the same will be placed before the Cabinet.Also Read: Cabinet approves two new semiconductor units worth Rs 3,936 crore under India Semiconductor MissionThe Budget, in February, had sought to give a big boost to the country's manufacturing prowess announcing, among various measures, the second edition of India Semiconductor Mission with a broad objective to promote chip manufacturing ecosystem in the country covering equipment, materials, indigenous designs and other related components.The government has maintained that India Semiconductor Mission 2.0 - announced in the Union Budget 2026-27 - signals India's deep commitment to chip manufacturing, with a focus on semiconductor equipment, materials, indigenous intellectual property and resilient supply chains.Union Minister for Electronics and IT Ashwini Vaishnaw had earlier said that the India Semiconductor Mission 2.0 will prioritise indigenous chip design, productisation, attracting ecosystem partners and development of talent.As many as 12 semiconductor manufacturing projects have been approved with an investment pipeline of about Rs 1.64 lakh crore under the India Semiconductor Mission, including one semiconductor fabrication unit, two compound semiconductor fabrication units and nine packaging units.On the design side, 24 projects are being supported under the Design Linked Incentive Scheme, 105 companies have been assisted with advanced chip design tools and 23 design 'tapeouts' have been completed at various foundries, including at advanced nodes, reflecting India's growing depth in semiconductor design.Terming the semiconductor advances as India's "long-time dream", a senior IT Ministry official said 12 semiconductor manufacturing projects have been approved, two of which have been inaugurated for commercial manufacture earlier this year. Another one - CG Semi - is likely to get inaugurated later this week.Also Read: India’s semiconductor push to drive $300 billion market by 2035: Report"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 IT Ministry official said, adding that more projects are likely to come up.India has emerged as a key player in the technology landscape and "a voice to reckon with" on standards, the official added.

The government expects the enhanced programme to help India meet up to 75% of its domestic semiconductor demand by 2030, reducing import dependence and supporting the country's ambitions of becoming a...