The Indian Ministry of Finance has approved a budget proposal of approximately ₹1.25 lakh crore (around $15 billion) for the second phase of the India Semiconductor Mission (ISM 2.0).
The allocation marks a significant escalation in the country's efforts to build a comprehensive domestic chip-making ecosystem, moving beyond initial fabrication incentives to cover the broader supply chain.
The new mission is designed to promote the entire semiconductor value chain, including the production of equipment, raw materials, and indigenous chip designs.
By addressing these upstream components, the government aims to reduce reliance on imports for critical high-tech components and create a more self-sufficient industry structure.
This expansion invites global semiconductor companies to deepen their operational footprint in India, leveraging the enhanced support for ancillary industries.
The move comes as Asian nations compete to capture a larger share of the global semiconductor manufacturing base.