Finance Ministry okays Rs 1.25 lakh crore outlay for India Semiconductor Mission 2.0
New Delhi, June 30
The Finance Ministry's Expenditure Finance Committee has approved an outlay of Rs 1.25 lakh crore for the India Semiconductor Mission 2.0, paving the way for the next phase of the country's semiconductor manufacturing push, according to a report in NDTV Profit.
The proposal was cleared by the committee last week and will now be sent to the Union Cabinet for final approval.
The proposed outlay marks a significant increase from the Rs 76,000 crore allocated as part of ISM 1.0, under which the government approved 10 semiconductor facilities across chip fabrication, assembly, and design.
The expanded scheme is expected to support the wider ecosystem, including industrial gases, specialty chemicals, capital equipment, MSMEs, and ancillary suppliers, with the aim of strengthening India's semiconductor supply chain.
The government expects the enhanced programme to help India meet up to 75 per cent of its domestic semiconductor demand by 2030, reducing import dependence and meeting the country's target of becoming a global electronics manufacturing hub.
The government has already carried out inter-ministerial consultations for the launch of the new scheme and the Ministry of Electronics and Information Technology was awaiting the Finance Ministry's clearance.
India's own consumption and production of electronics is expanding at an unprecedented pace. India today has over 65 crore smartphone users, and the electronics manufacturing output is touching Rs 12 lakh crore annually.
At the same time, the country is also developing AI-based systems, data centres, and electric vehicles that require semiconductor chips. This surge in both demand and innovation makes it essential for India to secure its place in the global semiconductor value chain.
Under the India Semiconductor Mission, 10 semiconductor plants have been approved. The construction work of the plants is progressing at a fast pace. A pilot production line in one of the units has already started in Gujarat's Sanand, and within a year, four more units are expected to go into production. Global leaders such as Applied Materials, Lam Research, Merck, and Linde are investing in supporting factories and supply chains.
— IANS
Reader Comments
As someone in the electronics industry, this is long overdue. India has the talent and demand - we just need the infrastructure. The 75% domestic target by 2030 is ambitious though. Hope they focus on quality control and not just quantity.
Great initiative but I hope the funds are utilized properly and not lost in bureaucracy. We have seen many 'mega projects' struggle with implementation. Also, need to ensure MSMEs and ancillary suppliers actually benefit from this, not just big corporates. 🤞
This is exactly what we need to reduce dependency on China! With AI, EVs, and data centres growing so fast in India, having our own chips is crucial. The 10 approved plants and investments from Applied Materials and Lam Research show global confidence in India's semiconductor story. 🚀
65 crore smartphone users and touching Rs 12 lakh crore electronics output - these numbers show India is ready for this leap. But we also need to focus on R&D and design, not just manufacturing. Building a real semiconductor ecosystem means nurturing talent from IITs and other institutions. Hope the government has a plan for that too.
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