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Informist, Wednesday, Jul. 15, 2026

--Cabinet OKs INR 1.275 tln for semiconductor mission 

--Minister Vaishnaw:Started Semiconductor Mission 2.0 post talks with industry 

NEW DELHI – The Union Cabinet Wednesday approved the second edition of the India Semiconductor Mission with an outlay of INR 1.275 trillion for six years, Electronics and Information Technology Minister Ashwini Vaishnaw said. The scheme is expected to bring in investments worth INR 4 trillion and lead to production worth INR 2 trillion and exports amounting to INR 1 trillion, he added.

This second edition builds on the momentum generated under India Semiconductor Mission 1.0 and is aimed at holistic development of the country's semiconductor ecosystem through six pillars, a government release said.

The first pillar, design, will build upon the initial success in chip design, as per the release. "Further, building blocks have been identified for the development of strategic and commercial products. Under Semicon 2.0, the aim is to develop IPs (intellectual property), designs of chips, and systems with this approach," the release said.

Under the second pillar, companies involved in the manufacturing and research and development of machines, materials, chemicals, and gases that are essential for manufacturing semiconductors will be incentivised. The third pillar involves efforts to attract manufacturers to set up fabrication plants for manufacturing chips in India, including silicon fabs, compound semiconductor fabs, discrete component fabs, display fabs, and so on.

The fourth pillar will actively encourage establishment of assembly, testing, marking, and packaging units as well as outsourced semiconductor assembly and test, with a focus on getting some of the most advanced technologies in the domain to India.

The fifth and sixth pillars will focus on research and development and talent development, respectively. "The semiconductor journey has started with 28nm-110nm (nanometre) as the node.  Now, the focus will be on developing more advanced nodes and other advanced technologies in collaboration with leading R&D centres within and outside India," the release said.

So far, 12 manufacturing units have been approved under the first phase of the mission with a cumulative investment of over INR 1.64 trillion. Of these 12 approved proposals, three companies – Micron Semiconductor Technology India Pvt. Ltd., Kaynes Semicon Pvt. Ltd., and CG Semi Pvt. Ltd. –- have started commercial production, with one more expected to start in 2026.

Prime Minister Modi has interacted with various leaders in the semiconductor space to set up this industry in India, which is seen as a strategic one across several countries today, Vaishnaw said.  End

Reported by Shakshi Jain

Edited by Avishek Dutta

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