The expenditure department of the Finance Ministry is set to approve a budget proposal allocating ₹1.25 lakh crore to the India Semiconductor Mission 2.0. This step aims to strengthen India’s role in global chip production and establish it as a major semiconductor hub, according to sources. The amount exceeds the ₹76,000 crore set aside for the first phase of the mission. Sources indicated that the Expenditure Finance Committee will endorse the funding, after which it will go to the Cabinet for final approval. The Union Budget in February outlined measures to boost manufacturing, including the second phase of the semiconductor mission to develop an ecosystem for chip production, equipment, materials, local designs and related components. Officials have described the initiative as a sign of India’s commitment to semiconductor manufacturing, with emphasis on equipment, materials, domestic intellectual property and stable supply chains. Electronics and IT Minister Ashwini Vaishnaw previously noted that the mission will focus on local chip design, product development, attracting partners and building talent. So far, 12 semiconductor projects have received approval, involving an investment of about ₹1.64 lakh crore. These include one fabrication unit, two compound semiconductor units and nine packaging facilities. In addition, 24 projects are supported under the Design Linked Incentive Scheme, with 105 companies receiving advanced design tools and 23 design tapeouts completed at various foundries. A senior ministry official described the progress as fulfilling a long-standing national goal, noting that two projects have already started commercial production and another is expected to launch soon.
