The Finance Ministry's Expenditure Finance Committee has approved a ₹1.25 lakh crore outlay for India Semiconductor Mission 2.0, which will now go to the Union Cabinet for final approval.
The outlay is a sharp increase from the ₹76,000 crore allocated under ISM 1.0, under which 10 semiconductor facilities were approved.
The government expects the expanded programme to help India meet up to 75% of its domestic semiconductor demand by 2030.
The Finance Ministry's Expenditure Finance Committee has approved an outlay of ₹1.25 lakh crore for the India Semiconductor Mission 2.0, according to a report by NDTV Profit.
The proposal was cleared by the committee last week and will now be placed before the Union Cabinet for final approval, the report said.
1 June 2026
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The India Semiconductor Mission is the central government's flagship programme aimed at developing a domestic semiconductor ecosystem and strengthening India's capabilities across the semiconductor supply chain.
The proposed outlay marks a sharp increase from the ₹76,000 crore allocated under ISM 1.0, under which the government had approved 10 semiconductor facilities spanning chip fabrication, assembly and design, according to the report.
The expanded scheme is also designed to back related segments such as industrial gases, specialty chemicals, capital equipment, MSMEs and ancillary suppliers, in order to build a stronger domestic supply chain, the report said.
The government expects the enhanced programme to help India meet up to 75% of its domestic semiconductor demand by 2030, reducing import dependence and supporting the country's goal of becoming a global electronics manufacturing hub, according to the report.
NDTV Profit had first reported on April 21 that the government was preparing to launch an expanded semiconductor incentive scheme with an outlay of ₹1 lakh crore to ₹1.2 lakh crore. At the time, inter-ministerial consultations were underway, with the Ministry of Electronics and Information Technology awaiting clearance from the Finance Ministry.
This development follows the government's approval of 12 semiconductor manufacturing projects under the India Semiconductor Mission.
According to an official fact sheet released by the government, the approved projects include one semiconductor fabrication unit, two compound semiconductor fabrication units and nine semiconductor packaging units. These investments are expected to strengthen India's domestic semiconductor manufacturing capabilities while reducing dependence on imports.
India Semiconductor Mission 2.0 was announced as part of the Union Budget 2026-27, and the latest approval builds on that announcement. Its priorities are expected to include manufacturing equipment for chips, critical raw materials, homegrown intellectual property, newer production technologies and stronger global supply links, the report said. These efforts are aimed at helping India become a more competitive player in the global chip industry.
