India Allocates Rs 1,000 Cr for Semiconductor Mission 2.0

• Rs. 1,000 crore allocated to boost semiconductor production, design, and global supply chains
• Indian semiconductor market set to grow from USD 38B in 2023 to USD 100B by 2030
• Initiatives like Chips to Start-up and academic programs to build a skilled semiconductor workforce

The India Semiconductor Mission 2.0 (ISM 2.0) launch through the Union Budget 2026-27 established a crucial milestone which supports the technology objectives of India. The initiative aims to increase domestic semiconductor output because chips serve as essential components for all digital and industrial systems.

The Mission, with an allocation of Rs 1000 crore, aims to drive domestic chip manufacturing, enhance the semiconductor industry, and align with India tech initiatives, providing a significant semiconductor production boost under the Make in India vision to strengthen the India semiconductor policy and ecosystem.

The ISM 2.0 program develops semiconductor equipment manufacturing capabilities while creating Indian semiconductor intellectual property, establishing both domestic and international supply chain networks. The budget allocates Rs. 1,000 crore for this mission in FY 2026-27 which focuses on research led by industry partners and development of skilled professionals.

Semiconductors serve as fundamental components which enable devices to function in computing, telecommunications, defense, and artificial intelligence applications. India has achieved substantial progress in developing its semiconductor ecosystem through ISM 1.0 while advancing its design capabilities and building testing and fabrication facilities.

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The Indian semiconductor market, valued at USD 38 billion in 2023, is expected to reach USD 100-110 billion by 2030, driven by the Make in India and Make for the World visions.

The first phase of ISM, approved in December 2021, received Rs. 76,000 crore in incentives, supporting 10 projects totaling Rs. 1.60 lakh crore. The projects which include silicon fabs and assembly units aim to produce 70 to 75 percent of India's chip requirements by the year 2029.

ISM 2.0 builds on this foundation with a focus on advanced manufacturing technologies, including 3nm and 2nm nodes, aiming to position India among the top semiconductor nations by 2035.

The ISM 2.0 program builds a workforce through its Chips to Start-up program and its academic courses and its partnerships with industry leaders. The initiatives establish the foundation which will enable India to achieve semiconductor self-reliance while integrating into global markets.