The Union Budget 2026-27 marked a decisive moment for India’s technology ambitions with the announcement of India Semiconductor Mission 2.0.The new phase signals a clear policy push to deepen domestic semiconductor capabilities, as chips underpin every critical digital and industrial system. ISM 2.0 will focus on producing semiconductor equipment and materials in India, designing full-stack Indian semiconductor intellectual property, and fortifying both domestic and global supply chains.

The Union Budget 2026-27 marked a decisive moment for India’s technology ambitions with the announcement of India Semiconductor Mission 2.0.The new phase signals a clear policy push to deepen domestic semiconductor capabilities, as chips underpin every critical digital and industrial system. ISM 2.0 will focus on producing semiconductor equipment and materials in India, designing full-stack Indian semiconductor intellectual property, and fortifying both domestic and global supply chains.A provision of Rs. 1,000 crore has been made for ISM 2.0 for FY 2026-27, with a strong emphasis on industry-led research and training centres to drive technology development and create a future-ready skilled workforce.

The Union Budget 2026-27 has allocated Rs 1,000 crore for India Semiconductor Mission 2.0, marking a decisive push to deepen domestic chip capabilities. This next phase will focus on producing semiconductor equipment and materials, designing Indian intellectual property, and fortifying supply chains. India’s semiconductor market is projected to reach $100-110 billion by 2030, building on the foundation of ISM 1.0 and its Rs 76,000 crore incentive framework. By 2035, the nation aims to be among the top global semiconductor powers, targeting advanced 3-nanometre and 2-nanometre manufacturing nodes.