Finance ministry is set to clear a budget proposal allocating Rs1.25 lakh crore for the India Semiconductor Mission (ISM) 2.0, significantly higher than the Rs76,000 crore outlay earmarked for the first phase of the programme.
According to a report citing sources, the Expenditure Finance Committee (EFC) is expected to approve the Rs1.25 lakh crore proposal, following which it will be placed before the Union Cabinet for final approval.
Meanwhile, India is set to have its third semiconductor manufacturing unit commence commercial production on Saturday (July 4), with CG Semi Private Limited expected to begin operations, according to a senior official in the Ministry of Electronics and Information Technology (MeitY).
The official said the facility will be the third semiconductor unit to become operational among the 12 projects approved by the government under the India Semiconductor Mission.
"So far, 12 semiconductor projects have been approved under the India Semiconductor Mission. Two have already commenced commercial production, and CG Semi is expected to begin commercial production this Saturday (July 4). One or two more facilities are expected to become operational before the end of the year," the official said.
With the commencement of operations at CG Semi, India will have three semiconductor units in commercial production, while the remaining approved projects are at various stages of construction and development.
The first facility to begin commercial production was Micron Technology's $2.75 billion Assembly, Testing, Marking and Packaging (ATMP) plant in Sanand, inaugurated on February 28, 2026. The unit manufactures DRAM and NAND flash memory products for mobile devices, data centres and automotive applications.
The second operational unit is Kaynes Semicon's OSAT facility in Sanand, which commenced commercial production in March 2026.
CG Semi Private Limited, a joint venture between CG Power and Industrial Solutions, Japan's Renesas Electronics, and Thailand's Stars Microelectronics, is investing over Rs7,600 crore to establish two Outsourced Semiconductor Assembly and Test (OSAT) facilities—G1 and G2—in Sanand for advanced semiconductor packaging and testing.
Launched in December 2021 with an outlay of Rs76,000 crore, the India Semiconductor Mission provides fiscal support of up to 50% of project costs for silicon fabs, compound semiconductor units, ATMP and OSAT facilities, as well as semiconductor design projects.
So far, the government has approved 12 semiconductor projects across six states, involving a cumulative investment of around ₹1.64 lakh crore.
