Lok Sabha Question No. 3080 (UNSTARRED), answered on 2026-03-11
Subject: India Semiconductor Mission 2.0
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Dr. Kalanidhi Veeraswamy

## GOVERNMENT OF INDIA

## MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 3080

TO BE ANSWERED ON: 11.03.2026

## INDIA SEMICONDUCTOR MISSION 2.0

## 3080.    DR. KALANIDHI VEERASWAMY:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state: (a) whether the Government has announced India Semiconductor Mission (ISM) 2.0 in the General Budget  2026  to  further  strengthen  the  domestic  semiconductor  and  display  manufacturing ecosystem;

- (b) if so, the details of the scheme including financial outlay, target segments (fabs, ATMP/OSAT, compound semiconductors, design-linked incentives) and proposed implementation timeline;
- (c) whether ISM 2.0 provides enhanced fiscal incentives, technology partnerships or research and development support compared to the earlier phase;
- (d) the number of semiconductor manufacturing and assembly units approved or proposed under the new phase along with their proposed locations;
- (e) whether any facilities are proposed in the State of Tamil Nadu and the expected employment generation therefrom; and
- (f)  the  steps  taken  by  the  Government  to  ensure  supply  chain  resilience,  skilled  manpower development and long-term competitiveness under ISM 2.0?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

(a) to (f): The semiconductor development strategy is inspired by Hon'ble Prime Minister's vision of Atmanirbhar Bharat and Make in India, Make for the world.

As part of this strategy, the Government started Semicon India programme for the development of semiconductor & display manufacturing ecosystem  to develop  a complete ecosystem,  ranging from talent pool, design, fabrication, assembly, testing, packing, and module manufacturing.

## Achievements:

In a short span of three years, it has seen  an investment commitment of about Rs 1.6 Lakh Cr.

- 10 units have been approved including 2 fabs and 8 ATMPs/OSATs and construction work is also going on rapidly
- Commercial production in one unit and Pilot production in 3 units has already started
- These projects are expected to produce more than 24 Bn chips /annum from packaging facilities, 55000 wafer starts per month (WSPM) from fabrication facilities
- 24 projects approved for the design of semiconductor chips and SoCs, with a total project value of Rs. 900 crore, including investments in design infrastructure
- o These  projects  address  critical  sectors  such  as  video  surveillance,  drone  detection, energy metering, microprocessors, satellite communications, and broadband and IoT SoCs.
- o Out of 24 projects, 14 companies have raised venture capital funding to scale up and productize their solutions, catalyzing private investment at more than a 3× multiple of the incentives disbursed
- o ₹650 crore raised in VC funding by Indian semiconductor startups
- o 7 chips have been successfully fabricated out of 16 designs taped out across multiple foundries, including advanced nodes such as 12 nm at TSMC
- 105  fabless  chip  design  companies  have  been  supported  with  access  to  advanced  chip design infrastructure, cumulatively consuming 60 lakh hours of tool usage
- 315 Universities are getting access to advanced EDA tools for the students. So far, their usage has exceeded 185 lakh hours
- 146 designs taped out by 49 institutions across India out of which SCL has successfully fabricated and packaged 94 student-designed chips

Building on the success of Semicon India Programme, Union Budget 2026-27 has announced that the India Semiconductor Mission 2.0 will be launched to produce equipment and materials, design full stack, Indian IP and fortify supply chains.

The details of the scheme are under preparation.

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