New Delhi, February 1, 2026: In a major step to strengthen India’s semiconductor sector, Union Finance Minister Nirmala Sitharaman on Sunday announced the launch of India Semiconductor Mission (ISM) 2.0 with an allocation of Rs 40,000 crore while presenting the Union Budget 2026 in Parliament.
The second phase of the mission aims to expand capabilities across the semiconductor value chain, including manufacturing equipment and materials, developing homegrown intellectual property, and reinforcing domestic supply chains. Sitharaman said the initiative would also support industry-led research and training centres to develop advanced technology and prepare a skilled workforce.
Highlighting the success of earlier initiatives, she noted that the Electronics Components Manufacturing Scheme, launched in April 2025 with an outlay of Rs 22,919 crore, has already attracted investment commitments exceeding double its original target. “Building on this momentum, we are increasing the outlay to Rs 40,000 crore under ISM 2.0 to further strengthen India’s semiconductor ecosystem,” she said.
The government is also scaling efforts in artificial intelligence education, expanding training programs to 500 universities nationwide. Under this plan, students will receive hands-on learning and industry-aligned coursework, following a model already implemented in 315 universities where students are actively involved in chip design.
Speaking at a press briefing, Union Minister Ashwini Vaishnaw said the curriculum is being finalised in consultation with industry experts to ensure it meets workforce demands. He added that the next phase, AI Mission 2.0, is scheduled to launch in the next five to six months, alongside major research programmes to strengthen India’s technological capabilities.
Vaishnaw noted that the national strategy focuses on creating a common compute infrastructure to make technology access equitable and to build on earlier digital successes such as UPI, DigiLocker, and 5G rollout. The government aims to maintain momentum in developing talent and supporting innovation across emerging sectors.
