The Expenditure Department at the Ministry of Finance has approved a budget proposal allocating 1.25 lakh rupees to the India Semiconductor Program 2.0. This decision is made in the context of the country's efforts to strengthen its global ambitions in chip manufacturing and solidify its status as a world center for semiconductor production.
Significance of Increased Funding
This approval is significant as the amount exceeds the previously allocated 76,000 crore rupees for the first version of the program (ISM 1.0). Sources reported that the Expenditure and Finance Committee gave the green light for the allocation of 1.25 lakh crore rupees for ISM 2.0, after which the matter will be presented to the Cabinet of Ministers.
Goals of the New Program
A budget was presented in February aimed at significantly boosting the country's manufacturing capabilities. Measures included announcing the launch of the second phase of the India Semiconductor Program with the broad goal of developing the chip manufacturing ecosystem in the country, including equipment, materials, indigenous developments, and other related components.
The government emphasizes that the India Semiconductor Program 2.0, announced in the Budget for 2026-27, demonstrates India's deep commitment to chip manufacturing. The main focus is on semiconductor equipment, materials, domestic intellectual property, and creating resilient supply chains.
Priorities and Achievements
Minister of Electronics and Information Technology Ashwini Vaishnaw previously stated that the India Semiconductor Program 2.0 will prioritize the development of indigenous chips, their commercialization, attracting partners into the ecosystem, and developing human capital.
Under the India Semiconductor Program, up to twelve semiconductor manufacturing projects have been approved with an investment portfolio of approximately 1.64 lakh crore rupees. These projects include one semiconductor fabrication plant, two compound semiconductor plants, and nine packaging units.
Design Development and Manufacturing
Regarding design, support is provided for 24 projects under the Design Incentive Scheme. Furthermore, 105 companies received assistance in acquiring advanced chip design tools, and 23 'tapeout' projects have been completed in various fabs, including those operating on advanced nodes, reflecting India's growing depth in semiconductor design.
A high-ranking official from the Ministry of Information Technology called the achievements in semiconductors the 'long-awaited dream' of India. He reported the approval of 12 semiconductor manufacturing projects, two of which were opened for commercial production earlier this year. Another project, CG Semi, is likely to be commissioned this week.
This official added that the opening of CG Semi is scheduled for July 4th, and perhaps one or two more projects will follow by the end of the current calendar year, making the dream of commercial semiconductor production in the country a reality. He also noted that additional projects are expected. According to the official, India has become a key player in the technological landscape and a 'voice worth listening to' on standardization issues.