NEW DELHI
The Finance Ministry’s Expenditure Finance Committee (EFC) has officially approved a substantial 1.25 lakh crore rupee outlay for the India Semiconductor Mission (ISM) 2.0. This major financial commitment marks a significant step forward in the country’s ambition to become a global leader in electronics manufacturing, with the proposal now heading to the Union Cabinet for final authorization.
This new allocation represents a massive jump from the 76,000 crore rupees provided for the original ISM, which successfully facilitated the approval of 10 semiconductor facilities across chip fabrication, assembly, and design. The expanded phase 2.0 aims to go beyond basic manufacturing by building a robust, self-reliant ecosystem. It is designed to support the entire supply chain, including specialty chemicals, industrial gases, essential capital equipment, and local MSMEs.
The government’s strategic goal is ambitious: to meet 75 percent of domestic semiconductor demand by 2030. This push is critical as India’s electronics output reaches 12 lakh crore rupees annually, driven by a base of over 65 crore smartphone users and a rapidly growing appetite for electric vehicles, data centers, and AI systems.
With construction already moving fast on the initial 10 plants, including a pilot production line already active in Sanand and Gujarat, the expanded mission aims to solidify India’s role in the global value chain. By attracting international leaders and empowering local suppliers, India is positioning itself to secure its technological future and reduce its reliance on foreign imports.