Finance Minister Nirmala Sitharaman announced the launch of India Semiconductor Mission (ISM) 2.0 during her Union Budget 2026 speech, building on the success of ISM 1.0 that significantly expanded India’s semiconductor sector capabilities. This ambitious upgrade targets equipment production, materials development, full-stack design with indigenous IP, and fortified supply chains.
ISM 2.0: Comprehensive Ecosystem Expansion
ISM 2.0 will drive end-to-end semiconductor innovation, enabling domestic manufacturing of critical components and reducing reliance on global imports. By focusing on full-stack design and Indian IP, the mission strengthens national security and positions India as a competitive player in the global semiconductor value chain.
Industry-Led Research and Talent Development
The initiative emphasizes industry-led research and training centers to cultivate advanced technology and a skilled workforce. These centers will bridge academia-industry gaps, fostering innovation in chip design, fabrication, and testing while creating high-quality jobs for India’s youth.
This strategic leap forward promises technological sovereignty, economic growth through exports, and a robust digital economy foundation amid India’s rising global tech stature.
