The Union Cabinet has approved the India Semiconductor Mission (ISM) 2.0, allocating ₹1.27 lakh crore to strengthen the country’s semiconductor and electronics manufacturing ecosystem.

The ambitious initiative aims to attract nearly Rs. 4 lakh crore in private investments, significantly expanding India’s chip manufacturing capabilities while reducing dependence on semiconductor imports.

The approval marks a major milestone in the government's efforts to position India as a global hub for semiconductor production and advanced electronics manufacturing.

Building on the progress achieved under the first phase of the India Semiconductor Mission, ISM 2.0 introduces a comprehensive six-pillar strategy focused on semiconductor fabrication, chip packaging and testing, design innovation, research and development, skill development, and building a resilient semiconductor supply chain.

The initiative also seeks to foster a vibrant ecosystem that supports startups, encourages domestic innovation, and enhances collaboration between industry, academia, and research institutions.

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The mission is expected to play a pivotal role in supporting high-growth sectors such as artificial intelligence (AI), electric vehicles (EVs), telecommunications, consumer electronics, aerospace, and defense, all of which rely heavily on advanced semiconductor technologies.

By strengthening domestic manufacturing capabilities, the government aims to ensure greater supply chain resilience and reduce vulnerability to global disruptions.

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Officials believe the initiative will generate substantial employment opportunities across manufacturing, engineering, design, and research while facilitating technology transfer through partnerships with leading global semiconductor companies.

The policy is also expected to accelerate investments in cutting-edge fabrication facilities, advanced packaging units, and semiconductor design centers across the country.

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With ISM 2.0, the government aims to boost India's technological self-reliance, strengthen its participation in the global semiconductor value chain, and enhance the country's competitiveness in the rapidly growing electronics sector.

The initiative represents one of India's most significant industrial policy measures, laying the foundation for a world-class semiconductor ecosystem that can drive innovation, attract foreign investment, and support long-term economic growth.