New Delhi: Finance Minister Nirmala Sitharaman announced a Rs 40,000 crore outlay for semiconductors while presenting the Budget 2026-27. Sitharaman announced the ‘India Semiconductor Mission 2.0’ to “capitalise on the momentum of the semiconductor mission.”
According to the minister, the focus will be on industry-led research and training centres for semiconductors. “Semiconductor mission 2.0 will focus on producing equipment and materials designed for full-stack Indian IP,” she added.
“ISM 1.0 expanded India’s semiconductor sector capabilities. Building on this, we will launch ISM 2.0 to produce equipment and materials, design full-stack Indian IP, and fortify supply chains. We will also focus on industry-led research and training
centres to develop technology and skill workforce,” she said, while presenting the budget.
In 2021, India had begun its semiconductor journey. Back then, it had approved incentive package of Rs 76,000 crore under the India Semiconductor Mission. Ten major projects have been approved across six states since then. These cover wafer fabrication, ATMP/OSAT, and compound semiconductor manufacturing.
Earlier this month, Electronics and Information Technology minister Ashwini Vaishnaw had said four semiconductor units in the country—including those being set up by the Tata Group, Micron, and CG Semi—would move beyond pilot runs and trial production. The minister had claimed that these units would begin regular, large-scale manufacturing from 2026, reported the New Indian Express. “Kaynes Semicon, CG Power, Micron Technology and Tata Electronics are set to start commercial manufacturing of semiconductors in India in 2026,” he added.
The government has also gave its nod to 24 projects for financial support and extended design infrastructure support to 100 companies. This has enabled chip design by domestic start-ups and MSMEs.