India Semiconductor Mission (ISM) 2.0
**Objective:** Produce semiconductor equipment and materials in India, design full-stack Indian IP, and fortify domestic and global supply chains. **Budget:** ₹1,000 crore allocated for FY 2026-27; broader semiconductor ecosystem support of ₹40,000 crore. **Key Features:** - Equipment and materials manufacturing domestically - Full-stack Indian semiconductor intellectual property design - Industry-led research and training centres for technology and skilled workforce - Builds on ISM 1.0 achievements in fab capacity creation - Electronics Components Manufacturing Scheme outlay raised to ₹40,000 crore from ₹22,919 crore **Focus:** Transition from policy formulation (ISM 1.0) to consolidation, technological depth, and global integration. **Beneficiaries:** Semiconductor manufacturers, chip designers, electronics industry, research institutions. **Announced:** Union Budget 2026-27 (February 1, 2026).
- India Semiconductor Mission (ISM) 2.0 received ₹1,000 crore for FY 2026-27 with broader semiconductor ecosystem support of ₹40,000 crore.
- Focuses on domestic manufacturing of semiconductor equipment and materials, and designing full-stack Indian semiconductor intellectual property.
- Electronics Components Manufacturing Scheme outlay raised to ₹40,000 crore from ₹22,919 crore.
- Establishes industry-led research and training centres for technology development and skilled workforce creation.
- Represents transition from ISM 1.0 policy formulation to consolidation, technological depth, and global integration.
- Announced in Union Budget 2026-27 (February 1, 2026), benefiting semiconductor manufacturers, chip designers, and research institutions.
What is the objective of India Semiconductor Mission (ISM) 2.0?
ISM 2.0 aims to produce semiconductor equipment and materials in India, design full-stack Indian IP, and fortify domestic and global supply chains.
What is the budget allocation for ISM 2.0?
ISM 2.0 has been allocated ₹1,000 crore for FY 2026-27, with broader semiconductor ecosystem support of ₹40,000 crore announced alongside it.
Which ministry implements ISM 2.0?
ISM 2.0 is implemented by the Ministry of Electronics and Information Technology (MeitY), which oversees India's semiconductor and electronics manufacturing ecosystem.
How has the Electronics Components Manufacturing Scheme outlay changed?
The Electronics Components Manufacturing Scheme outlay has been raised from ₹22,919 crore to ₹40,000 crore to support the wider ecosystem.
When was ISM 2.0 announced?
ISM 2.0 was announced in the Union Budget 2026-27 presented on 1 February 2026, marking a transition from ISM 1.0 to deeper technological consolidation.
How does ISM 2.0 differ from ISM 1.0?
ISM 2.0 shifts from policy formulation under ISM 1.0 to consolidation, technological depth, and global integration through equipment making and full-stack IP design.
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