The Union Cabinet chaired by Prime Minister Narendra Modi cleared a budget of ₹1.27 lakh crore for the second phase of the India Semiconductor Mission (ISM) 2.0, popularly called Semicon 2.0. The move aims to attract around ₹4 lakh crore of private investment and generate semiconductor output worth ₹2 lakh crore during the scheme period.
Key Developments
- Approval of a ₹1.27 lakh crore outlay for Semicon 2.0 (July 15, 2026).
- Target to attract ₹4 lakh crore of investments across the semiconductor ecosystem.
- Goal to achieve self‑reliant production of indigenous chips by the end of the programme.
- Incentives extended to raw‑material suppliers such as minerals and specialty gases.
- Six pillars identified, the first being chip design.
Important Facts
The first edition, ISM 1.0, received an allocation of ₹76,000 crore and approved 12 projects with cumulative investments of about ₹1.64 lakh crore. The majority of these investments came from domestic firm Tata Electronics and its semiconductor arm.
The timing is critical as the world faces a memory‑chip shortage and growing demand for chips that power AI devices. The scheme expects to draw intere