India Semiconductor Mission 2.0 Gets Rs 1.25 Lakh Crore Nod From Finance Ministry Panel

India's push to become a serious semiconductor manufacturing power has received its most significant boost yet, with a Finance Ministry panel clearing a Rs 1.25 lakh crore outlay for India Semiconductor Mission 2.0. The approval, reported by NDTV Profit and The Hindu, positions the programme as one of the largest government-backed industrial initiatives India has ever undertaken.

The original India Semiconductor Mission laid the groundwork by attracting pledges from companies including Tata Electronics, CG Power and international players to set up chip fabrication and ATMP (assembly, testing, marking and packaging) facilities. The 2.0 iteration, with its dramatically enlarged budget, signals that the government intends to move up the value chain — potentially targeting more advanced chip manufacturing capabilities rather than just back-end processes.

India's semiconductor ambitions are driven by both economic and strategic logic. The country currently imports the vast majority of the chips that power its electronics, automobiles, defence systems and consumer goods. Building domestic capacity would reduce this vulnerability, create highly skilled employment, and position India as a credible alternative to Taiwan and China in the eyes of global technology companies seeking to diversify supply chains.

With Rs 1.25 lakh crore now cleared, the focus shifts to attracting global foundries and technology licensors, training a skilled workforce, and executing the complex infrastructure buildout that semiconductor fabs require. The scale of the commitment makes it clear that this is now a top-tier national priority.