India Semiconductor Mission 2.0 Launched: Budget 2026 Boosts Chip Manufacturing with 10 Projects Worth ₹1.6 Lakh Crore

Union Budget 2026-27 introduces India Semiconductor Mission 2.0 as major push towards semiconductor self-reliance, building on successful ISM 1.0 framework. Government has approved 10 semiconductor projects with envisaged investments of approximately ₹1.6 lakh crore, comprising two fabrication plants (fabs) and eight assembly, testing, marking and packaging (ATMP) units. Four semiconductor plants have begun pilot production with Micron Technology leading transition to commercial operations by February 2026. CG Power and Kaynes Technology plants to follow commercial manufacturing in 2026, while Tata's Assam facility scheduled to begin pilot production by mid-2026 and scale up to commercial operations by year-end. India's strategic semiconductor roadmap targets progression from 28-nanometer technology to 7-nanometer by 2030, and eventually to 3-nanometer and 2-nanometer nodes by 2032. ISM 2.0 complements Electronics Component Manufacturing Scheme (₹40,000 crore allocation) to strengthen entire electronics ecosystem from components to advanced chips. The mission supports India's ambition to become integral part of global semiconductor supply chains, reducing import dependence and creating thousands of high-skilled jobs in cutting-edge technology sector. Industry interest from Taiwan, Japan and South Korea remains strong, positioning India as strategic semiconductor manufacturing destination.