Chennai: The Finance Minister has announced the launch of the second phase of the India Semiconductor Mission (ISM 2.0) to strengthen India’s domestic semiconductor industry. The move aims to build local capabilities in manufacturing semiconductor equipment, chemicals, and industrial gases — key materials needed for chip production.
According to industry bodies such as the India Electronics and Semiconductor Association (IESA) and SEMI India, this market is expected to grow to nearly $400 billion by 2030. Experts say this presents a big opportunity for India to become an important player in the global semiconductor supply chain.
The announcement comes at a time when the world is facing supply shortages in the semiconductor sector. Rising demand for artificial intelligence (AI) technologies and high-performance computing has increased the need for advanced chips. As a result, many countries are competing to secure equipment and raw materials required for chip manufacturing.
Industry experts explained that large investments are now being directed toward high-bandwidth memory (HBM) and advanced DRAM chips. These are essential for training AI models and running complex data centres. Because of this shift, there is pressure on the supply of specialised machines and materials, creating bottlenecks worldwide.
With ISM 2.0, the government plans to reduce India’s dependence on imports and encourage local production. The programme is expected to support new factories, promote research and development, and attract global semiconductor companies to set up operations in India.
Analysts believe this initiative will not only strengthen the electronics manufacturing ecosystem but also create jobs, boost exports, and improve India’s position in advanced technology sectors. Over time, it could help India become more self-reliant in chip manufacturing and better prepared to meet growing global demand.
Overall, industry representatives welcomed the move, saying ISM 2.0 will play a key role in building a strong and competitive semiconductor ecosystem in the country.