Cabinet approves Semicon 2.0 with ₹1,27,500 crore outlay
The Union Cabinet approved Semicon 2.0 on 15 July 2026 with a total outlay of ₹1,27,500 crore to build India's semiconductor design and manufacturing ecosystem on six pillars.
Summary
The Union Cabinet chaired by Prime Minister Narendra Modi approved Semicon 2.0 on 15 July 2026 with a total outlay of ₹1,27,500 crore for India's semiconductor design and manufacturing ecosystem. Semicon 2.0 rests on six pillars: design, machines and materials, more fabs, ATMP/OSAT, research and development, and talent development; India's first fab is scheduled to be commissioned in 2028. Under ISM 1.0, twelve manufacturing units with cumulative investment of over ₹1.64 lakh crore have been approved, including one silicon fab, one silicon carbide fab and nine packaging units. Semicon 2.0 succeeds the Semicon India programme, which the Cabinet approved on 15 December 2021 with an outlay of ₹76,000 crore while setting up the India Semiconductor Mission (ISM).
Key facts
- Approved
- 15 July 2026, Union Cabinet
- Outlay
- ₹1,27,500 crore
- Six pillars
- Design; machines and materials; fabs; ATMP/OSAT; R&D; talent
- First fab
- Scheduled for commissioning in 2028
- ISM 1.0 progress
- 12 units approved, ₹1.64 lakh crore+ investment; 24 design projects; 105 start-ups/MSMEs given EDA tools
- Static link
- Semicon India programme approved 15 Dec 2021 with ₹76,000 crore; India Semiconductor Mission set up
Practice MCQs 4 questions
What is the total outlay of Semicon 2.0, approved by the Union Cabinet on 15 July 2026?
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Correct answer: C — ₹1,27,500 crore
Semicon 2.0 has a total budget outlay of ₹1,27,500 crore.
On how many pillars is Semicon 2.0 built?
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Correct answer: A — Six
Semicon 2.0 has six pillars: design, machines and materials, fabs, ATMP/OSAT, R&D, and talent development.
According to the Semicon 2.0 Cabinet release, in which year is India's first semiconductor fab scheduled to be commissioned?
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Correct answer: D — 2028
The release states that the first fab is scheduled to be commissioned in 2028.
Consider the following statements about India's semiconductor programmes: 1. The Semicon India programme was approved by the Cabinet in December 2021 with an outlay of ₹76,000 crore. 2. The India Semiconductor Mission (ISM) was set up under the 2021 programme to drive the sector. 3. Under ISM 1.0, twelve semiconductor manufacturing units have been approved. Which of the statements given above are correct?
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Correct answer: B — 1, 2 and 3
All three are correct: the Cabinet approved the ₹76,000-crore programme and set up ISM on 15 December 2021, and twelve units have been approved under ISM 1.0.