India's Semiconductor Mission 2.0 Receives Major Funding Boost
Significant Funding Approved for Semiconductor Manufacturing
Representational Image(Photo: @bullzohq/X)
New Delhi, June 30: The Expenditure Finance Committee (EFC) of the Finance Ministry has sanctioned a substantial budget of Rs 1.25 lakh crore for the India Semiconductor Mission (ISM) 2.0. This funding is set to propel the next stage of semiconductor manufacturing in the country, as reported by a leading news outlet.
The committee approved the proposal last week, which will now proceed to the Union Cabinet for final endorsement.
This new budget represents a significant increase from the Rs 76,000 crore allocated for ISM 1.0, which facilitated the establishment of 10 semiconductor facilities focused on chip fabrication, assembly, and design.
The expanded initiative aims to bolster the entire ecosystem, including sectors such as industrial gases, specialty chemicals, capital equipment, MSMEs, and ancillary suppliers, thereby enhancing India's semiconductor supply chain.
The government anticipates that this enhanced program will enable India to fulfill up to 75 percent of its domestic semiconductor requirements by 2030, thereby decreasing reliance on imports and supporting the nation’s ambition to become a global hub for electronics manufacturing.
Inter-ministerial discussions have already been conducted regarding the launch of this new initiative, with the Ministry of Electronics and Information Technology awaiting clearance from the Finance Ministry.
India's consumption and production of electronics are growing at an extraordinary rate. Currently, the country boasts over 650 million smartphone users, and the annual output of electronics manufacturing is nearing Rs 12 lakh crore.
Simultaneously, India is advancing in AI-driven systems, data centers, and electric vehicles, all of which necessitate semiconductor chips. This rising demand and innovation underscore the importance of India securing its position within the global semiconductor value chain.
As part of the India Semiconductor Mission, 10 semiconductor plants have been approved, with construction progressing rapidly. A pilot production line has already commenced operations in Sanand, Gujarat, and four additional units are expected to begin production within the next year. Major global companies like Applied Materials, Lam Research, Merck, and Linde are investing in supporting factories and supply chains.