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Cabinet approves Rs 1.27 lakh crore for India Semiconductor Mission 2.0
(16-Jul-2026, 14:46 Hours IST)  
The Union Cabinet has cleared the second phase of the country's flagship chip manufacturing program, the India Semiconductor Mission 2.0 (ISM 2.0) with a fiscal outlay of Rs 1.25 lakh crore. The government has extended the program's lifecycle from five years to 12 years. The policy extension ensures sustained fiscal support for highly capital-intensive projects like silicon fabs, assembly units, and testing facilities. While the initial phase (ISM 1.0) focused heavily on building capacity and bringing packaging facilities online, ISM 2.0 shifts the focus to vertical integration. The government expects to attract investments of around Rs 4 lakh crore and lead to semiconductor production worth Rs 2 lakh crore during the scheme period.

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