India’s cabinet approved a 1.28 trillion rupee fund to bolster domestic semiconductor production. This allocation is valued at approximately $13.3 billion. Information Minister Ashwini Vaishnaw announced the initiative to establish the country as a global chip manufacturing hub. The government also allocated 625 billion rupees to support mobile phone manufacturing.
This funding expands the India Semiconductor Mission launched in 2021. The original mission began with an initial $10 billion outlay. Previous incentives successfully attracted investments from companies including Micron Technology for assembly and testing facilities.
The new phase, ISM 2.0, provides incentives for semiconductor equipment and materials manufacturing. The program also supports the domestic design of both strategic and commercial chips.