The second edition of India Semiconductor Mission will promote chip manufacturing ecosystem covering equipment, raw materials, indigenous designs and other components that are required to produce high-tech components
The Ministry of Finance has approved a Budget proposal of approximately ₹1.25 lakh crore for the India Semiconductor Mission 2.0 (ISM 2.0). This funding supports the expansion of domestic chip-making facilities and aims to attract global companies, reinforcing India’s status as a premier global semiconductor hub.According to top officials, the Department of Expenditure under the Ministry of Finance has approved the proposal. This new allocation marks a significant increase over the ₹76,000 crore budget previously earmarked for ISM 1.0.The Union Budget in February had introduced the second edition of the India Semiconductor Mission (ISM 2.0) to significantly bolster domestic manufacturing. This initiative aims to develop a comprehensive chip-making ecosystem by supporting equipment, raw materials, indigenous designs, and other critical components required for high-tech production.manufacturing projectsTerming the semiconductor advances as India’s “long-time dream”, a senior government official said 12 semiconductor manufacturing projects have been approved, including two that were inaugurated for commercial manufacturing earlier this year.Another one -- CG Semi -- is likely to get inaugurated later this week. “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 country has finally been achieved,” said a senior official at the Ministry of Electronics and Information Technology (MeitY).The official also said that India has emerged as a key player in technology landscape over the last 12 years and “a voice to reckon with” on standards.Earlier, Ashwini Vaishnaw, Minister for Electronics and IT, had said that in ISM 2.0, the top-most priority will be design companies. Under the ISM 1.0, as many as 12 semiconductor manufacturing projects have been approved with an investment pipeline of around ₹1.64 lakh crore.Some of the companies which are setting up facilities under the ISM 1.0 include Tata Electronics (in partnership with PSMC, Taiwan), Micron Technology, Kaynes Semicon, CG Power, HCL – Foxconn Joint Venture, Suchi Semicon, Crystal Matrix and 6M.Published on June 30, 2026
