New Delhi, June 30 (IANS). The Expenditure Finance Committee (EFC) of the Finance Ministry has approved a budget of Rs 1.25 lakh crore for India Semiconductor Mission (ISM) 2.0, paving the way for the next phase of promoting semiconductor manufacturing in the country. This information was given in ADTV Profit report.
The proposal was approved by the committee last week and will now be sent to the Union Cabinet for final approval.
ISM 2.0 The proposed budget is much higher than the Rs 76,000 crore allocated under ISM 1.0. Under ISM 1.0, the government had approved 10 semiconductor facilities related to chip manufacturing, assembly and design.
ISM 2.0 is expected to help the large ecosystem of industrial gases, special chemicals, capital equipment, MSMEs and supporting suppliers to strengthen India’s semiconductor supply chain.
The government hopes that with this scheme, India will be able to meet up to 75 percent of its domestic semiconductor demand by 2030, which will reduce dependence on imports and will also achieve the country’s goal of becoming a global electronics manufacturing hub.
The government has already held talks between ministries to launch the new scheme and the Ministry of Electronics and Information Technology was awaiting the approval of the Finance Ministry.
Consumption and production of electronics is increasing rapidly in India. Today there are more than 65 crore smartphone users in India and the annual output of electronics manufacturing has reached Rs 12 lakh crore.
Additionally, the country is also building AI-based systems, data centers and electric vehicles, which require semiconductor chips. Due to this surge in demand and innovation, it has become necessary for India to carve out its place in the global semiconductor value chain.
10 semiconductor plants have been approved under ‘India Semiconductor Mission’. The construction of these plants is going on rapidly. A pilot production line has already started at one unit in Sanand, Gujarat and production is expected to start in four more units within a year. Global companies such as Applied Materials, Lamm Research, Merck and Linde are investing in supporting factories and supply chains.
–IANS
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