India's Rs 1.27 Lakh Crore Semiconductor Mission 2.0 Approved to Bolster Global Chip Ecosystem

The Union Cabinet has approved the India Semiconductor Mission (ISM) 2.0, a Rs 1.27 lakh‑crore programme designed to create a trusted, self‑reliant and globally competitive semiconductor ecosystem. SEMI India chief Ashok Chandak described the move as "a really transformational step towards building what we call a trusted, self‑reliant and globally competitive semiconductor ecosystem" and said it shifts India from "credibility to capability" with sustained policy continuity.

The first phase, ISM 1.0, attracted about USD 20 billion, approved 12 projects and got three fabrication plants operational. ISM 2.0 broadens support across the full chip value chain – design, equipment and materials, wafer fabs, packaging and testing, R&D and talent development – and introduces incentives for critical inputs such as specialty chemicals and gases. The government aims to reduce import dependence, attract global chip makers through joint ventures, and meet rising demand from artificial‑intelligence, electric‑vehicle, defence and consumer‑electronics applications.

By expanding incentives and fostering a complete ecosystem, the initiative seeks to position India as a major hub in the worldwide semiconductor market and improve supply‑chain resilience.