What happened
The Union Cabinet has cleared the second phase of India’s semiconductor push, informally described as Semicon 2.0. The package covers the India Semiconductor Mission (ISM) and the Mobile Phone Manufacturing Scheme (MPMS), and it is designed to widen India’s electronics manufacturing base beyond simple assembly.
The second phase is presented as a five-year policy push with separate outlays for semiconductors and mobile phone manufacturing. The stated goals are to raise investment, expand production, and improve exports.
Background and earlier position
The first phase of the India Semiconductor Mission focused on building initial capability in fabrication, packaging, and related support. The policy was later amended to permit higher capital subsidies for major projects and to redirect some support toward smaller electronics components.
The current phase builds on that base, but with a broader ecosystem lens. The policy now places greater emphasis on chip design talent, semiconductor-grade chemicals and gases, capital machinery used in chip-making, and research and development.
Related current affairs
- What goals does Semicon 2.0 aim to achieve? How is it different from the first phase? What incentives does the Mobile Phone Manufacturing Scheme offer?
- What are the goals of Semicon 2.0 and the Mobile Phone Manufacturing Scheme?
- Semicon 2.0 approved by Cabinet (15.07.2026) to cover a complete semiconductor ecosystem
- Key Policy Measures Announced in 2026 Supporting Manufacturing, Energy Security, Trade/Investment, and Agriculture
- Empowering Governance through Digital Infrastructure (Digital Public Infrastructure, DPI)
- Promise of chips: India’s semiconductor push and the rationale for a larger mission