In a bold move to fortify India’s position in the global semiconductor race, the Centre is preparing to roll out India Semiconductor Mission 2.0 as early as May. The proposed budget, ranging from ₹1 lakh crore to ₹1.2 lakh crore, signals a massive escalation from the first phase’s ₹76,000 crore allocation.
Reports reveal ongoing consultations between key ministries, with MeitY leading the charge for Finance Ministry approval. The upgraded mission broadens its horizons, encompassing not just chip manufacturing and design but also vital upstream elements like equipment, raw materials, and specialty chemicals.
Emphasis will be on building resilient supply chains and developing indigenous IP stacks. Ecosystem enablers—ranging from gas providers and chemical producers to MSMEs—will receive targeted support to thrive in this expanded ecosystem.
Central to ISM 2.0 is the enhanced DLI 2.0 scheme, which could enable international partnerships for semiconductor R&D within India. Experts anticipate this will spur a wave of innovation, supporting the emergence of 50 fabless design companies in the coming years.
Global uncertainties have exposed vulnerabilities in semiconductor supply chains, making India’s timing impeccable. With projections showing domestic demand hitting $110 billion by 2030—as noted by MeitY’s S. Krishnan at a recent roadshow—the mission promises to catalyze self-sufficiency.
By addressing gaps in the entire value chain, ISM 2.0 positions India to emerge as a resilient hub for semiconductor innovation and production, driving economic growth and technological sovereignty.
