New Delhi: The Union government on Sunday announced the launch of India Semiconductor Mission (ISM) 2.0, earmarking Rs 40,000 crore to expand and deepen the country’s semiconductor manufacturing and innovation ecosystem.
Presenting the Union Budget 2026 in Parliament, Finance Minister Nirmala Sitharaman said the new phase of the mission would focus on building capabilities across the semiconductor value chain, including the production of equipment and materials, development of full-stack Indian intellectual property, and strengthening of supply chains.
She said ISM 2.0 would place strong emphasis on industry-driven research and training centres, aimed at developing advanced technologies and preparing a skilled workforce to meet future industry requirements.
The Finance Minister also highlighted the progress made under the Electronics Components Manufacturing Scheme, launched in April 2025 with an outlay of Rs 22,919 crore. According to Sitharaman, the scheme has already attracted investment commitments exceeding twice the original targets, reflecting growing industry confidence. To build on this momentum, the government has proposed increasing the outlay to Rs 40,000 crore.
Earlier, the Ministry of Electronics and Information Technology (MeitY) announced plans to expand artificial intelligence training to 500 universities across the country. The initiative is aimed at developing a steady talent pipeline for the AI industry through structured coursework and practical training.
Speaking at a press conference, Union Minister Ashwini Vaishnaw said the industry is finalising the curriculum to ensure students acquire skills aligned with market needs. He noted that the programme follows the semiconductor training model, under which students at 315 universities are already involved in chip design.
Vaishnaw said the expansion will form a key part of AI Mission 2.0, which the government plans to roll out in the next five to six months, once the first phase concludes. He added that the government will also announce major research programmes at an upcoming AI summit to strengthen India’s overall AI strategy.
The national AI approach will focus on building a common compute infrastructure to ensure wider and more equitable access to technology, drawing from the success of earlier digital initiatives such as UPI, DigiLocker, and the 5G rollout.
The second phase of the AI mission will focus on scaling up these efforts, with the government seeking inputs from stakeholders to ensure effective implementation and sustained progress in technology adoption.
