New Delhi, April 21: The central government is gearing up to launch the India Semiconductor Mission (ISM 2.0) by May, aiming to rapidly expand the semiconductor ecosystem in the country. The proposed budget for this initiative is estimated to be between ₹1 lakh crore and ₹1.2 lakh crore.
According to a report by NDTV Profit, discussions are ongoing among various ministries regarding ISM 2.0. The Ministry of Electronics and Information Technology is currently awaiting approval from the Finance Ministry.
Sources indicate that the proposed budget for ISM 2.0 is significantly higher than the initial phase, which was set at ₹76,000 crore.
Under ISM 2.0, the government aims to broaden the program’s scope beyond chip manufacturing and design. It will include support for semiconductor equipment, raw materials, and other essential inputs, while also focusing on building full-stack intellectual property and enhancing supply chain resilience.
This initiative comes at a time when global instability is causing continuous disruptions in global supply chains. Key players such as gas suppliers, specialty chemical manufacturers, small and medium enterprises (SMEs), and other ecosystem partners are expected to play a crucial role in this revised framework.
A major feature of the second phase is the revised Design-Linked Incentive (DLI 2.0) scheme, which may allow foreign companies to partner with Indian firms for semiconductor research and development within the country.
This initiative is expected to accelerate innovation and support the emergence of up to 50 fabless semiconductor design firms in the coming years. During India’s first ‘Nano Electronics Roadshow’ in March 2025, S. Krishnan, Secretary of the Ministry of Electronics and Information Technology, stated that domestic semiconductor demand is projected to reach $110 billion by 2030.
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My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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