The Union Cabinet approved India Semiconductor Mission 2.0 on July 15, 2026 with a ₹1,27,500 crore outlay — 68% larger than ISM 1.0. Six strategic pillars confirmed by Minister Vaishnaw. The ₹1,000 crore training centre provision is live. Here is everything that changed, and what institutions must do in the next 30 days.
We published the background before Cabinet approval. That article covers ISM 1.0 vs 2.0, the CDIL Mohali signal, and why Dholera at 50% construction matters. This article covers what changed on July 15 and what it means now that the scheme is live.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved ISM 2.0 on July 15 as part of a package of seven major decisions worth ₹2.19 lakh crore in a single session. Electronics Minister Ashwini Vaishnaw described ISM 2.0 as the third through fifth decisions of the seven — along with the ₹62,500 crore Mobile Phone Manufacturing Scheme, a National Investment Policy for Urea-2026, and two railway infrastructure approvals.
The semiconductor package, approved with a budgetary outlay of ₹1,27,500 crore, builds on ISM 1.0’s momentum. Under ISM 1.0: 12 manufacturing units approved with cumulative investment of ₹1.64 lakh crore; Micron, Kaynes, and CG Semi already in commercial production; 24 chip design projects approved; 105 startups granted EDA tool access.
ISM 2.0 is designed as a long-term programme to strengthen India’s semiconductor ecosystem across the entire value chain — not just manufacturing anchors.
We reported ₹1.25 lakh crore based on the EFC clearance figure (July 1). The final Cabinet-approved outlay is ₹1,27,500 crore — slightly higher. The six-pillar structure and the ₹1,000 crore training centre provision are confirmed exactly as anticipated. Everything else in our July 13 analysis holds.
Minister Vaishnaw confirmed the six-pillar structure in the Cabinet announcement. Each pillar targets a specific gap in the value chain that ISM 1.0’s facility-creation focus left unaddressed.
The ₹1,000 crore FY27 training centre provision sits under Pillar 6 (Talent). The Cabinet approval makes this a live, funded scheme — not a budgetary earmark. Applications are expected to open through MeitY within weeks. The “industry-led” requirement means a signed facility MoU is the primary qualification criterion. An institution without one cannot apply competitively.
The EFC clearance on July 1 was the internal Finance Ministry gate. The Cabinet approval on July 15 is the final step that makes the scheme legally operative.
| Dimension | EFC Clearance — July 1 | Cabinet Approval — July 15 |
|---|---|---|
| Status | Proposal cleared internally | Scheme legally approved and live |
| Outlay | ₹1.25 lakh crore (reported) | ₹1,27,500 crore (confirmed) |
| Pillar structure | Anticipated, not confirmed | Six pillars officially confirmed |
| Training centre fund | Expected under ISM 2.0 | Confirmed under Pillar 6 — applications opening |
| Application window | Would open after Cabinet | Open now — MeitY processing |
| What institutions should do | Prepare before the window | Apply — the window is open |
The scheme is live. The difference between a strong application and a late one is now measured in weeks, not months. Four actions — in sequence.
ISM 1.0 vs 2.0 comparison, CDIL Mohali, Dholera 50% — published July 13.
Read background → ISM 2.0 deep-diveThe complete breakdown including training centre eligibility matrix and ISM 1.0 vs 2.0 shift table.
Full guide → InstitutionsCurriculum, lab phases, NSQF alignment, faculty development, ISM 2.0 grant positioning.
The playbook → 12 approved projectsInvestment, location, technology, who is live. Who your programme should target.
Project timeline → Funding schemesHow the three ISM 1.0 funding mechanisms work. ISM 2.0 adds the training centre grant.
Schemes breakdown → Event — 63 days500+ exhibitors, 6 country pavilions, workforce zone. The MoU signing opportunity.
Event guide → AnalysisJapan, Korea, Netherlands, Singapore, Malaysia, Sweden. What India should ask each.
Read analysis → ISM hubAll schemes, all projects, ISM 2.0, C2S programme — in one place.
ISM hub → ⚡ Live signalsEvery ISM milestone, OSAT approval, and fab update as it happens. No noise.
Read Signal →The scheme that institutions have been preparing for is approved. Applications will open within weeks. Institutions with a running programme, signed MoU, and ISM portal registration are first in queue. We have 7 slots remaining at Semicon India 2026.
Free · 45 minutes · Semicon India 2026 · Sep 17–19 · Yashobhoomi, New Delhi