India clears ₹1.25 Lakh crore for Semiconductor Mission 2.0

India’s Finance Ministry Expenditure Finance Committee approved a ₹1.25 lakh crore outlay for the second phase of the India Semiconductor Mission (ISM 2.0), a proposal that will now be sent to the Union Cabinet for final approval. The funding is markedly higher than the ₹76,000 crore allocated to the first phase and is intended to broaden support for semiconductor equipment, materials, supply‑chain security and full‑stack chip design, as well as to set up industry‑led research and training centres.

Since its launch in 2021, ISM has approved 12 semiconductor projects with cumulative investments of around ₹1.64 lakh crore. Two OSAT facilities in Sanand have already entered commercial production, and a third unit – CG Semi Private Limited, a joint venture involving CG Power, Japan’s Renesas Electronics and Thailand’s Stars Microelectronics – is slated to start operations on 4 July, bringing the total of operational units to three. The mission aims to reduce India’s reliance on imported chips and to position the country as a trusted global semiconductor manufacturing hub amid rising geopolitical tensions.