India Doubles Down On Chips: Rs 1.25 Lakh Crore Cleared For Semiconductor Mission 2.0

New Delhi: Finance Ministry panel clears Rs 1.25 lakh crore outlay for India Semiconductor Mission 2.0.

The expenditure department under the Finance Ministry has cleared a Budget proposal entailing an allocation of Rs 1.25 lakh crore for the India Semiconductor Mission 2.0, as the country looks to advance global chip-making ambitions and cement its position as a semiconductor destination for the world, according to sources.

The approval is significant, as it is higher than the outlay of Rs 76,000 crore earmarked for ISM 1.0.

Sources said that the Expenditure Finance Committee has greenlit the Rs 1.25 lakh crore outlay for ISM 2.0 and that the same will be placed before the Cabinet.

This comes in after the Budget in February had announced the second edition of India Semiconductor Mission with a broad objective to empower the chip manufacturing ecosystem in the country. The government has also maintained that the India Semiconductor Mission 2.0, unveiled in the Union Budget 2026-27, reflects the country's strong resolve to build a self-reliant chip manufacturing ecosystem, spanning semiconductor equipment, materials, homegrown intellectual property, and robust supply chains. The India Semiconductor Mission has so far approved 12 manufacturing projects, drawing in investments worth nearly ₹1.64 lakh crore. The approved projects span one semiconductor fab, two compound semiconductor fabrication units, and nine packaging facilities. The momentum signals that India's chip manufacturing ambitions are fast moving from policy intent to on-ground reality.

With PTI Inputs 

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