New Delhi, Feb 1: Finance Minister Nirmala Sitharaman on Sunday announced the launch of India Semiconductor Mission (ISM) 2.0, with a Rs 40,000 crore outlay, aiming to boost the country's semiconductor ecosystem.

This initiative focuses on producing equipment and materials, designing full-stack Indian intellectual property, and strengthening supply chains

While presenting the Union Budget 2026, the Finance Minister stated that the new mission will focus on industry-led research and training centres to develop technology and a skilled workforce.

Sitharaman also highlighted the success of the Electronics Components Manufacturing Scheme, launched in April 2025 with an outlay of Rs 22,919 crore. She stated that the scheme has already received investment commitments double the targets.

"India's semiconductor mission, 1.0 expanded India's semiconductor sector capabilities. Building on this, we launch ISM 2.0 to produce equipment and materials, develop full-stack Indian IP, and strengthen supply chains. We will also focus on industry-led research and training centers to develop technology and a skilled workforce. The Electronics Components Manufacturing Scheme launched in April 2025 with an outlay of Rs 22,919 crores already has investment commitments at double the targets. We propose to increase the outlay to Rs 40,000 crore to capitalise on this momentum," Sitharaman said.