- India launches Semiconductor Mission 2.0 to expand chip-making capabilities and supply chains
- The mission focuses on equipment manufacturing, full-stack IP, and industry-led research centres
- Electronics Components Manufacturing Scheme's budget raised to Rs 40,000 crore due to strong investments
Finance Minister Nirmala Sitharaman announced the rollout of India Semiconductor Mission (ISM) 2.0 during her Budget 2026 speech, signalling a fresh effort to deepen and expand India's chip-making ecosystem.
“India's semiconductor mission 1.0 expanded India's semiconductor sector capabilities. Building on this, we launch ISM 2.0 to produce equipment and materials, develop full-stack Indian IP, and strengthen supply chains. We will also focus on industry-led research and training centres to develop technology and a skilled workforce,” she said in Parliament.
The programme is geared toward manufacturing critical equipment and materials, developing end-to-end intellectual property within India, and reinforcing domestic supply chains.
In her Union Budget 2026 speech, the Finance Minister said the proposed mission would prioritise industry-driven research hubs and training facilities to advance technology and build a skilled talent base.
Sitharaman also pointed to the strong response to the Electronics Components Manufacturing Scheme, introduced in April 2025, with a budgetary allocation of Rs 22,919 crore, noting that investment pledges have already exceeded the original targets by a wide margin.
“The Electronics Components Manufacturing Scheme launched in April 2025 with an outlay of Rs 22,919 crores already has investment commitments at double the targets. We propose to increase the outlay to Rs 40,000 crore to capitalise on this momentum,” she said.
By August 2025, India had cleared 10 semiconductor fabrication and packaging projects across six states, totally attracting investments of about Rs 1.6 lakh crore.
The Ministry of Electronics and Information Technology had earlier unveiled plans to roll out artificial intelligence training across 500 universities to build a steady talent pipeline for industry. The initiative will offer specialised curricula and hands-on training, drawing on a model already in use in the semiconductor space, where students at 315 institutions are engaged in chip design.
Union Minister Ashwini Vaishnaw said the curriculum is being refined in consultation with industry to ensure training remains relevant to market needs. He said the planned expansion will be rolled into AI Mission 2.0, which the government aims to introduce in five to six months as the current phase winds down.
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