India has approved 12 semiconductor manufacturing projects under the India Semiconductor Mission (ISM), with a cumulative investment pipeline of approximately ₹1.64 lakh crore, according to an official fact-sheet released on 28 June. The approved projects span one semiconductor fabrication unit, two compound semiconductor fabrication units, and nine packaging units, marking a significant structural advance in India's chip manufacturing ambitions.

ISM 2.0 and the Policy Push

Building on this foundation, India Semiconductor Mission 2.0, announced in the Union Budget 2026-27, signals a deepened national commitment to chip self-sufficiency. The upgraded mission focuses on semiconductor equipment, materials, indigenous intellectual property, and the development of resilient supply chains — areas where India has historically depended on imports.

On the design front, 24 projects are being supported under the Design Linked Incentive (DLI) Scheme. Additionally, 105 companies have received access to advanced chip design tools, and 23 design tapeouts have been completed at various foundries, including at advanced nodes. 'Reflecting India's growing depth in semiconductor design,' the official statement noted.

IndiaAI Mission: GPUs, Models and Mass Skilling

Running in parallel, the IndiaAI Mission — approved with an outlay of over ₹10,372 crore — has recorded significant progress over the past year. At its core is a shared compute facility housing over 45,000 GPUs, providing the computational backbone for AI research and deployment at national scale.

Under the AI Foundation Model pillar, 15 Large Language Models (LLMs) and Small Language Models (SLMs) are being supported across speech, text, and vision modalities. The AI Kosh platform now hosts over 12,519 datasets, 307 AI models, and 20 toolkits, making AI development resources openly accessible to researchers, startups, and institutions nationwide.

To extend AI capability beyond metros, 27 Data and AI Labs have been established in tier 2 and tier 3 cities. 684 Fellowships have been awarded to students, and 8.4 million learners have been supported through the YUVA AI course. Eighteen Centres of Excellence are operational across the country, and 20 Indian AI startups have received capacity-building support. AI Governance Guidelines, released in November 2025, affirm the government's stated commitment to safe, inclusive, and trustworthy AI development.

Electronics Manufacturing: A Decade of Transformation

The convergence of AI and semiconductor investments is already reshaping India's broader electronics manufacturing landscape, according to the official statement. The sector has grown into an industry valued at ₹13 lakh crore, and electronics has emerged as India's third-largest export category — a milestone described as unimaginable just a decade ago.

India is now the world's second-largest mobile phone manufacturer. The advanced manufacturing ecosystem taking shape — spanning AI-enabled data centre components, 5G equipment, and high-end networking gear — is integrating India into global technology supply chains while generating large-scale domestic employment.

What Comes Next

With ISM 2.0 now formally announced and the IndiaAI Mission scaling rapidly, the next phase will test India's ability to move from approvals and pilots to full-scale production. Industry observers note that translating a ₹1.64 lakh crore pipeline into operational fabs and packaging lines will require sustained policy consistency, skilled workforce development, and reliable infrastructure — challenges that remain works in progress.