Cabinet Approves ISM 2.0 — ₹1,27,500 Crore, Six Pillars, Scheme Live
The Union Cabinet approved India Semiconductor Mission 2.0 on July 15, 2026 with a budgetary outlay of ₹1,27,500 crore — 68% larger than ISM 1.0's ₹76,000 crore. Six strategic pillars confirmed. The scheme is live.
The Union Cabinet, chaired by PM Narendra Modi, approved ISM 2.0 on July 15, 2026 as part of seven major decisions worth ₹2.19 lakh crore. Electronics Minister Ashwini Vaishnaw announced the approval, describing ISM 2.0 as decisions three through five of the seven.
The six confirmed pillars: (1) Chip Design — deepening domestic design IP beyond 105 startups; (2) Machines & Materials — semiconductor equipment manufacturing and specialty chemicals; (3) Fabs — attracting silicon, compound, discrete, and display fabs; (4) ATMP/OSAT — advanced packaging growth; (5) R&D — moving beyond 28nm toward advanced nodes; (6) Talent — expanding from 68,000 trained students to cleanroom ops, fab construction, and specialised OSAT skills.
ISM 1.0 progress at time of ISM 2.0 approval: 12 manufacturing units approved (₹1.64 lakh crore cumulative investment), 3 in commercial production (Micron, Kaynes, CG Semi), 24 chip design projects approved, 105 startups with EDA tool access. The ₹1,27,500 crore ISM 2.0 outlay is separate from and additive to these commitments.
Cabinet approval makes ISM 2.0 legally operative. The ₹1,000 crore FY27 training centre provision (under Pillar 6 — Talent) is now a live, funded scheme — not a budgetary earmark. MeitY is expected to publish the formal application process within weeks. The same Cabinet session also approved a ₹62,500 crore Mobile Phone Manufacturing Scheme — signalling that the government is moving simultaneously on both semiconductor manufacturing (upstream) and electronics assembly (downstream). Institutions that have registered on ism.gov.in, started a programme, and have a facility MoU in place are in the first application queue. Those still preparing in October will be at least one cycle behind.