The Union Minister Ashwini Vaishnaw has said that the India Semiconductor Mission 2.0 (ISM 2.0) will focus on indigenous chip design & production, attracting ecosystem partners and development of talents. He noted that the government will continue to work on setting up semiconductor manufacturing plants and target to produce chips as small as 2 nano-meter node size. Further, the government will consider getting on board the equipment manufacturers, chemical manufacturers, gas manufacturers, and the people who improve the yield.

Building on gains of ISM 1.0 (launched in December 2021), the new phase (ISM 2.0) seeks to consolidate India’s position as a reliable and competitive participant in the global semiconductor network. In the Union Budget 2026-27, a provision of Rs 1,000 crore has been made for ISM 2.0 for FY 2026-27, with a strong emphasis on industry led research and training centres to drive technology development and create a future ready skilled workforce. Besides, the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India has a total financial outlay of Rs 8,000 crore for 2026-27. The programme aims to accelerate capital investment, generate high quality employment, and expand domestic capabilities across fabrication, packaging, and chip design. 

India is steadily emerging as a global semiconductor hub. The large-scale investments, expanding manufacturing capacity, and platforms such as SEMICON India 2025 reflect growing global confidence in India’s semiconductor journey.  Moreover, the Indian semiconductor market is expected to reach $100-$110 billion by 2030. The country is expected to achieve the capability to design and manufacture chips required for nearly 70% to 75% of domestic applications by 2029.