The Finance Ministry has cleared a major allocation of over ₹1 lakh crore for the second phase of the India Semiconductor Mission (ISM 2.0). The proposal is expected to be placed before the Union Cabinet for final approval soon.
Key Focus Areas of ISM 2.0
ISM 2.0 will focus on chip design, advanced semiconductor nodes (including 3nm and 2nm processes), research & development, semiconductor equipment, materials, and full-stack Indian intellectual property development.
The second phase aims to go beyond manufacturing incentives and build a stronger domestic semiconductor ecosystem to reduce dependence on imported chips.
Building on ISM 1.0
The first phase of the India Semiconductor Mission, launched in 2021 with ₹76,000 crore, has already attracted cumulative investments of over ₹1.6 lakh crore. Several fabrication, assembly, and packaging projects have been approved across the country.
ISM 2.0 will build on this foundation by expanding support for innovation and critical supply chain components.
Next Steps
Once the Union Cabinet grants approval, detailed guidelines and incentive structure for ISM 2.0 are expected to be rolled out soon.