India Launches Semiconductor 2.0 and Sets $8 Trillion Production Goal

The Government of India has accelerated a broad-based industrial strategy to reduce import dependence through the launch of the India Semiconductor Mission 2.0 (ISM 2.0) and a new mobile phone manufacturing scheme. Together, these initiatives represent a combined funding package of Rs 1.90 lakh crore. ISM 2.0 adopts an ecosystem approach focusing on equipment and materials while expanding the Design Linked Incentive scheme to include larger companies. The government intends to add four to five more fabs, including logic, memory, and display facilities.

Amardeep Singh Bhatia, Secretary of the Department for Promotion of Industry and Internal Trade, announced at the Indo-German Chamber of Commerce Dialogue in New Delhi that India aims to scale annual electronics and semiconductor production from USD 330 billion to USD 500 billion by 2030. Under the Viksit Bharat vision, the long-term goal is to reach a production value between USD 5.3 trillion and 8 trillion by 2047. To support this, the government is implementing sectoral reforms through a deregulation cell in the Cabinet Secretariat.

Domestic industrial progress includes the start of commercial production at the CG Semi facility in Gujarat. In the private sector, L&T Semiconductor Technologies plans to unveil approximately 40 products, including vision and security components, at the Semicon India event in September.