India just approved a Rs 1.25 lakh crore (~$15.2B) outlay for the second edition of its chip-making push — that’s 64% bigger than the Rs 76,000 crore allocated to the first India Semiconductor Mission. The Expenditure Finance Committee, under the Finance Ministry, cleared the budget proposal; it now heads to the Cabinet.
12 Manufacturing Projects, 24 Design Projects, 105 Companies With EDA Tools
The numbers under ISM 1.0 show this isn’t just policy theater. Twelve semiconductor manufacturing projects have been approved, carrying an investment pipeline of roughly Rs 1.64 lakh crore ($20B). That includes one full fab, two compound semiconductor fabs, and nine packaging units. On the design side, 24 projects are supported under the Design Linked Incentive scheme, 105 companies have been handed advanced chip design tools (think Cadence/Synopsys-level EDA), and 23 design tapeouts have been completed at various foundries — including advanced nodes.
Two Fabs Already Running, CG Semi Launching July 4
Minister Ashwini Vaishnaw confirmed that two of the approved manufacturing units have been inaugurated and are in commercial production this year. The next to cut the ribbon is CG Semi, scheduled for July 4. A senior IT Ministry official told YourStory that “one or two more” fabs should come online before end of calendar 2026, calling it India’s “long-time dream” realised.
From Policy to Production — What ISM 2.0 Targets
ISM 2.0, announced in the Union Budget 2026-27, shifts focus from just building fabs to semiconductor equipment, materials, indigenous intellectual property, and resilient supply chains. Ashwini Vaishnaw said the next phase will prioritise indigenous chip design, productisation, attracting ecosystem partners, and talent development. The goal isn't just assembly; it's building a self-sufficient chip ecosystem. With 12 projects in the pipeline and a $15B cheque behind them, India’s semiconductor ambitions just got a lot harder to dismiss. CG Semi's July 4 inauguration will be the next live test.
When the Cabinet signs off, the real work begins — turning that budget into foundry tapeouts at scale.
Source: Finance Ministry panel clears Rs 1.25 lakh crore outlay for India Semiconductor Mission 2.0
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