Cabinet approves ₹1.27 lakh crore for Semicon Mission 2.0
The Indian Union Cabinet has approved the ₹1.27 lakh crore Semicon Mission 2.0 to bolster the domestic semiconductor ecosystem. The program aims to incentivize the entire value chain, including raw material suppliers and chip design, to achieve self-reliance.
Why it matters
This initiative is a strategic move to reduce dependency on global supply chains and position India as a key player in the global semiconductor and AI hardware market.
The Union Cabinet on Wednesday (July 15, 2026) cleared ₹1.27 lakh crore for the second edition of India Semiconductor Mission, IT Minister Ashwini Vaishnaw said.
The government expects the new scheme to attract investments of around ₹4 lakh crore and lead to semiconductor production worth ₹2 lakh crore during the scheme period.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Semicon 2.0 for the development of India's semiconductor design and manufacturing ecosystem, an official statement said.
The new edition of the semiconductor programme has provisions to incentivise even suppliers of raw material in the chip manufacturing industry, including minerals and gases.
"Cabinet has approved ISM 2.0 with a total outlay of ₹1.27 lakh crore," the Minister said.
Mr. Vaishnaw said the new scheme covers the entire value chain of the semiconductor ecosystem.
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