Finance Ministry Clears Outlay of Rs 1.25 lakh cr For Semiconductor Mission 2.0
In the last budget, the government had sought to give a big boost to the country's manufacturing prowess announcing, among various measures, the second edition of India Semiconductor Mission with a broad objective to promote chip manufacturing ecosystem in the country covering equipment, materials, indigenous designs and other related components
New Delhi: In a major step towards expanding India’s semiconductor ecosystem, the Union finance ministry on Tuesday approved a budget proposal entailing an outlay of Rs 1.25 lakh crore for the country’s semiconductor mission 2.0. The move of the government, however, aims to advance its global chip-making ambitions across all destinations in the world, a top source said.
The proposed outlay of the government is significantly higher than the Rs 76,000 crore allocated under the first phase of the India Semiconductor Mission, underscoring the government's continued focus on building a domestic semiconductor-manufacturing ecosystem in the country.
As per the source, the expenditure finance committee (EFC) under the finance ministry approved an outlay of Rs 1.25 lakh crore for India's semiconductor mission (ISM) 2.0. “In a meeting held last week, the EFC cleared the decks for the proposal to be taken up by the next Cabinet. The ISM 2.0 will be geared towards the entire semiconductor value chain, spanning chip design, fabrication and packaging, broadening the scope of the government's semiconductor push,” the source said.
In the last budget, the government had sought to give a big boost to the country's manufacturing prowess announcing, among various measures, the second edition of India Semiconductor Mission with a broad objective to promote chip manufacturing ecosystem in the country covering equipment, materials, indigenous designs and other related components.
The government has maintained that ISM 2.0 signals India's deep commitment to chip manufacturing, with a focus on semiconductor equipment, materials, indigenous intellectual property and resilient supply chains. “ISM 2.0 will prioritise indigenous chip design, productisation, attracting ecosystem partners and development of talent,” Union minister Ashwini Vaishnaw had earlier said.
As many as 12 semiconductor manufacturing projects have been approved with an investment pipeline of about Rs 1.64 lakh crore under the India Semiconductor Mission, including one semiconductor fabrication unit, two compound semiconductor fabrication units and nine packaging units.