Finance Panel Clears ₹1.25 Lakh Crore for India Semiconductor Mission 2.0

The allocation broadens support from fabs to equipment, materials, chip design and talent, to be placed before the Union Cabinet for final approval.

Overview

The Finance Ministry’s expenditure panel approved the ₹1.25 lakh crore outlay on Tuesday, June 30, and the proposal will now go to the Union Cabinet for final sign‑off.
The new sum is a marked increase from ISM 1.0’s ₹76,000 crore and signals a shift in policy from only building fabs to backing the whole chip ecosystem.
Twelve manufacturing projects have been approved so far with a reported investment pipeline of about ₹1.64 lakh crore, and a pilot production line has started in Sanand, Gujarat, with more plant inaugurations planned.
The scheme’s detailed rules, subsidy mechanics and any changes to existing ATMP/OSAT support have not been published, leaving questions about how incentives will be allocated and timed.
Industry leaders say success will depend on patient capital, local tools and early government demand, and the government projects ISM 2.0 could help cut chip imports and strengthen domestic supply chains by 2030.