In a significant push for the nation’s tech ambitions, the Government of India has earmarked Rs. 1,000 crores for the India Semiconductor Mission (ISM) 2.0 in the Union Budget 2026-27.
The new funding aims to supercharge domestic production, with investments slated for semiconductor manufacturing equipment, local IP development, and supply chain fortification both within India and on the international stage.
This upgraded version of the ISM will focus on industry-driven research and the refinement of training centres to enhance technology advancement, thereby fostering a skilled workforce for the future growth of the industry.
With India aiming for self-reliance through boosting domestic manufacturing in multiple sectors, the need for semiconductor manufacturing has exponentially increased.
Recently, Qualcomm tapped out the most advanced 2nm chips led by Indian engineering teams. This is a major boost to Indian semiconductor aspirations.
The first phase of the ISM was supported by a Rs. 76,000 crores incentive scheme, with ten projects worth Rs. 1.60 lakh crores approved by December, 2025, covering the entire manufacturing spectrum from fabrication units, packaging to assembly, and testing infrastructure development.
By: Shreya Bansal, Sub-editor
