India Semiconductor Mission 2.0 Announced in Union Budget 2026-27
Why in the news
In the Union Budget 2026-27, presented on 1 February, the Finance Minister announced a second phase of the India Semiconductor Mission. It builds on the first phase and widens the focus beyond chip plants.
Key facts
- ISM 2.0 aims to produce equipment and materials, design full-stack Indian intellectual property, and make supply chains more resilient.
- The speech also stresses industry-led research and training centres to build technology and a skilled workforce.
- An allocation of ₹1,000 crore for 2026-27 is reported for ISM 2.0.
- As of December 2025, ten projects with investment of ₹1.60 lakh crore had been approved across six states.
| Item | Detail |
|---|---|
| ISM 1.0 approval | December 2021 |
| ISM 1.0 incentive outlay | ₹76,000 crore |
| Fiscal support | Up to 50% |
| ISM 2.0 allocation, 2026-27 | ₹1,000 crore |
About the India Semiconductor Mission
The mission was approved in December 2021 with an incentive outlay of ₹76,000 crore, offering fiscal support of up to 50% to eligible projects. Its first phase focused on bringing chip manufacturing capacity to India.
Exam angle
- Scheme name and number: ISM 2.0, announced in Budget 2026-27.
- Focus areas: equipment, materials, full-stack IP, supply chains.
- Figures to recall: ₹1,000 crore for 2026-27 and ₹76,000 crore for the first phase.