New Delhi — The Finance Ministry’s Expenditure Finance Committee has approved a proposed outlay of Rs 1.25 lakh crore for the India Semiconductor Mission 2.0, clearing the way for the next phase of the country’s chip manufacturing push, according to a report by NDTV Profit.
The proposal was approved last week and will now be sent to the Union Cabinet for final clearance.
The planned funding is significantly higher than the Rs 76,000 crore allocated under the first phase of the India Semiconductor Mission, which supported 10 semiconductor projects spanning chip fabrication, assembly and design.
The expanded program is expected to cover a broader semiconductor ecosystem, including industrial gases, specialty chemicals, capital equipment, micro, small and medium enterprises, and ancillary suppliers.
The government expects the new phase to help India meet as much as 75 percent of its domestic semiconductor demand by 2030, reduce reliance on imports and support its goal of becoming a major global electronics manufacturing hub.
Interministerial consultations on the scheme have already been completed, and the Ministry of Electronics and Information Technology had been awaiting clearance from the Finance Ministry.
India’s electronics production and consumption have grown rapidly, with more than 650 million smartphone users and annual electronics manufacturing output approaching Rs 12 lakh crore.
Demand for semiconductor chips is also rising as the country expands artificial intelligence systems, data centers and electric vehicle manufacturing. The growth has increased pressure on India to strengthen its position in the global semiconductor supply chain.
Ten semiconductor plants have been approved under the existing mission, with construction progressing at several sites. A pilot production line has begun operating at one facility in Sanand, Gujarat, and four more units are expected to begin production within a year.
Global companies including Applied Materials, Lam Research, Merck and Linde are also investing in supporting factories and supply-chain infrastructure. (Source: IANS)
