Finance Ministry clears over ₹1 lakh cr for India Semiconductor Mission 2.0; Cabinet nod likely soon

The Finance Ministry has cleared an allocation of over ₹1 lakh crore for the second phase of the India Semiconductor Mission (ISM 2.0), sources told CNBC-TV18.

Following the approval, the government is likely to move a Cabinet note soon to seek final clearance. The proposal is expected to be placed before the Cabinet for consideration before the end of April, sources added.

ISM 2.0 will focus on strengthening India’s semiconductor ecosystem by prioritising research & development (R&D), design, and

innovation. The scheme is also expected to offer incentives for developing advanced semiconductor nodes, including 3nm and 2nm technologies.

The move builds on the first phase of the India Semiconductor Mission, which had an outlay of ₹76,000 crore. Under Phase 1, the government approved 10 projects, attracting cumulative investments of around ₹1.60 lakh crore.

The renewed push comes as India looks to deepen its presence in the global semiconductor value chain and reduce import dependency amid rising geopolitical and supply chain uncertainties.

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