The Union Cabinet of India is advancing the India Semiconductor Mission 2.0 to expand the nation's chip design and manufacturing ecosystem.

This initiative represents a strategic effort to reduce India's reliance on semiconductor imports. By strengthening the full-stack ecosystem, the government aims to accelerate the Make-in-India and Digital-India initiatives to secure technological sovereignty.

The mission focuses on several key pillars, including semiconductor design, manufacturing, research and development, packaging, and talent development. While some reports indicated that the cabinet nod was awaited, other sources said that the mission had already received approval [1, 2].

Financial outlays for the project vary across reports. A Finance Ministry panel cleared Rs 1.25 lakh crore for the mission [3]. Other reports indicate the Cabinet earmarked Rs 1.27 lakh crore [4] or approved up to Rs 1.28 lakh crore [5] for the project.

In addition to the semiconductor mission, the government has moved forward with a Mobile Phone Manufacturing Scheme. This accompanying scheme was cleared with a funding allocation of Rs 62,500 crore [4].

The push for domestic production comes as global supply chains for critical components remain volatile. The government's approach involves creating a comprehensive pipeline that supports everything from the initial design of the chips to the final packaging and assembly within Indian borders.

These developments were reported following a cabinet meeting held in New Delhi in February 2024 [1, 2, 6].

“The mission focuses on several key pillars, including semiconductor design, manufacturing, research and development, packaging, and talent development.”

India is attempting to pivot from being a consumer of electronics to a primary producer of the underlying hardware. By funding both the Semiconductor Mission 2.0 and a mobile phone manufacturing scheme, the government is building a vertical supply chain. This reduces vulnerability to global chip shortages and positions the country as a viable alternative to existing semiconductor hubs in East Asia.