Budget 2026: India Boosts Chip Manufacturing with Rs 40,000 Cr Semiconductor Mission 2.0

• The central government has launched India Semiconductor Mission (ISM) 2.0 with an outlay of Rs. 40,000 crore to strengthen domestic chip manufacturing.
• The mission focuses on developing equipment, raw materials, and technology with Indian intellectual property to reduce reliance on imports.
• Finance Minister Nirmala Sitharaman highlighted the priority given to industry-linked research centers and training facilities under ISM 2.0.
• The Electronics Component Manufacturing Scheme, launched in April 2025, has already attracted significant investments.
• AI Mission 2.0 and expanded AI training in universities aim to equip students with industry-relevant skills, complementing semiconductor efforts.

Why It Matters: India's Budget 2026 allocates Rs 40,000 crore for Semiconductor Mission 2.0, aiming for self-sufficiency in chip manufacturing.