Key facts
- Cabinet approved ₹1.27 lakh crore for Semicon Mission 2.0
- Mission targets chip design and semiconductor manufacturing buildout
- Aimed at reducing India's reliance on Chinese electronics supply chains
- Equivalent to approximately $13.3 billion
India's Union Cabinet has cleared ₹1.27 lakh crore for Semicon Mission 2.0, the government's most ambitious attempt yet to establish a self-sufficient semiconductor ecosystem and wrest electronics supply-chain leverage away from China. The approval covers investments in chip fabrication, advanced packaging, and enhanced domestic chip design infrastructure.
The scale of the commitment signals a fundamental shift in India's industrial strategy. For years, India has remained almost entirely dependent on imported semiconductors — most routed through Chinese manufacturing networks — to feed its booming smartphone and consumer electronics market. The new mission directly targets that vulnerability, with an emphasis on both attracting global foundries and nurturing homegrown design talent.
The move also builds on the earlier Semicon India programme and comes as global chipmakers accelerate efforts to diversify away from Taiwan and China. India is competing with incentive packages being offered by the United States, Japan, and the European Union to land major semiconductor facilities.
For the Indian technology ecosystem, the implications are profound. A domestic chip design and manufacturing base could eventually lower costs for device makers, create high-skill engineering jobs, and give India strategic leverage in an industry increasingly at the centre of geopolitical competition. Whether the capital translates into operational fabs within this decade will be the critical test of the mission's success.