The finance ministry’s expenditure finance committee (EFC) has approved a ₹1.25 lakh crore outlay for the India Semiconductor Mission 2.0 (ISM 2.0), moving the programme closer to launch. The proposal will now be presented to the Union cabinet for final approval, according to inc42.com. This allocation is significantly higher than the ₹76,000 crore allocated under the first phase of the mission.
Since its launch in 2021, the India Semiconductor Mission has approved 12 semiconductor projects with cumulative investments of around ₹1.64 lakh crore committed across the ecosystem. The government has also supported 24 semiconductor design projects under the Design Linked Incentive (DLI) scheme and provided 105 companies access to advanced chip design tools. Additionally, 23 chip tapeouts have been completed across various foundries, including those using advanced technology nodes.
The increased funding for ISM 2.0 reflects India’s strategic intent to reduce dependence on imported chips and establish itself as a trusted global semiconductor manufacturing hub amid geopolitical tensions and a fragmented global technology supply chain. The mission builds on the progress made under ISM 1.0, which has already seen significant investments and approvals for semiconductor manufacturing and design projects.
The next step for ISM 2.0 is obtaining Union cabinet approval, after which the programme will officially launch. The government’s continued support aims to accelerate India’s semiconductor ecosystem development, with the ₹1.25 lakh crore outlay marking a substantial commitment to the sector’s growth.