Finance Ministry Approves ₹1.25 Lakh Crore For India Semiconductor Mission 2.0

India's chip-making ambitions have cleared a major financial hurdle. The Department of Expenditure under the Finance Ministry has approved a ₹1.25 lakh crore allocation for India Semiconductor Mission 2.0, comfortably exceeding the ₹76,000 crore set aside for the first edition by 65%. The proposal now heads to the Cabinet for final sign-off.

The second edition was announced in the February Union Budget with a broader mandate than its predecessor. Rather than focusing primarily on fabrication facilities, Mission 2.0 targets the entire chip supply chain: equipment, raw materials, indigenous intellectual property, component manufacturing and ecosystem development. Design companies will get top billing, according to Electronics and IT Minister Ashwini Vaishnaw.

Where Mission 1.0 Stands

Twelve semiconductor manufacturing projects have been approved under the first edition, backed by an investment pipeline of around ₹1.64 lakh crore. The portfolio spans:

• One semiconductor fabrication unit

• Two compound semiconductor fabrication units

• Nine packaging facilities

Two of these projects have already been inaugurated for commercial production in 2026. CG Semi is next in line, with its inauguration scheduled for 04 July. A senior Ministry of Electronics and Information Technology official said one or two more facilities are expected to come online before December, describing commercial semiconductor manufacturing in India as a dream finally being realised.

Companies currently building under Mission 1.0 include Tata Electronics in partnership with Taiwan's PSMC, Micron Technology, Kaynes Semicon, CG Power, an HCL-Foxconn joint venture, Suchi Semicon, Crystal Matrix and 6M.

Also Read- CCIL Gets EU Approval To Offer Clearing Services

Design Ecosystem Is Growing Too

The manufacturing push is running alongside a deepening design ecosystem. Twenty-four projects are being supported under the Design Linked Incentive Scheme, 105 companies have accessed advanced chip design tools and 23 tapeouts have been completed at various foundries including at advanced nodes. Mission 2.0 will build on this foundation with a stronger emphasis on productisation and talent development.