New Delhi: The Finance Ministry's Expenditure Finance Committee (EFC) has approved an outlay of Rs 1.25 lakh crore for the India Semiconductor Mission (ISM) 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.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
