Taking a major step towards making India a global semiconductor manufacturing hub, the Department of Expenditure of the Finance Ministry has approved the budget proposal of Rs 1.25 lakh crore for India Semiconductor Mission (ISM) 2.0. Sources gave this information.
This approval is much higher than the allocation of Rs 76,000 crore earmarked for ISM 1.0. According to sources, the Expenditure Finance Committee has approved the expenditure of Rs 1.25 lakh crore for ISM 2.0 and now the proposal will be presented before the Union Cabinet for final approval.
India Semiconductor Mission 2 announced in the budget
In the budget presented in February, efforts were made to boost the manufacturing capacity of the country. In this, along with many measures, the second phase of India Semiconductor Mission was announced, the main objective of which was to promote the chip manufacturing environment in the country. This includes equipment, materials, indigenous designs and other related components. The government says that the India Semiconductor Mission 2.0 announced in the Union Budget 2026-27 reflects India’s deep commitment towards chip manufacturing.
Focus will be on increasing chip design and production
Union Electronics and Information Technology (IT) Minister Ashwini Vaishnav had earlier said that under India Semiconductor Mission 2.0, priority will be given to increasing chip design, production etc. in the country. Under the India Semiconductor Mission, 12 semiconductor manufacturing projects with an investment of approximately Rs 1.64 lakh crore have been approved. These include one semiconductor manufacturing unit, two compound semiconductor manufacturing units and nine packaging units.
These companies will benefit
India’s Semiconductor Mission is no longer limited to just government announcements, but is gradually taking shape on the ground as well. To create a semiconductor manufacturing ecosystem in the country, there will be a huge need for fabrication plants as well as specialty chemicals, industrial gases, fluorochemicals and high-performance materials. This is the reason why some chemical companies working in this entire value chain are coming into the attention of investors. Big opportunities are being created for chemical companies related to supply chain. Companies like Linde India, Navin Fluorine International and Gujarat Fluorochemicals are preparing to take advantage of this growth through industrial gases, specialty chemicals and fluoropolymers.
Leave a Reply