India eyes full semiconductor value chain under ISM 2.0 with design firms in focus, says Ashwini Vaishnaw

India Semiconductor Mission (ISM) 2.0 will prioritise building domestic chip design capabilities, strengthening the semiconductor ecosystem and expanding the talent base, Union Minister Ashwini Vaishnaw said on Saturday, outlining the government’s next phase strategy for the sector.

Speaking at a Qualcomm event in Bengaluru, Vaishnaw said the upcoming phase of the programme will place design-led growth at the centre of India’s semiconductor ambitions, alongside continued efforts to establish fabrication capacity and advanced manufacturing capabilities in the country.




“In Semicon 2.0, the topmost priority will be design companies. Design companies, design startups who can design a product, take it to the market, become the next Qualcomm from India, hopefully get that huge innovation, that entire energy which is there in our startups into deep tech. That will be a focus area,” Vaishnaw said, PTI quoted.

The minister was speaking at an event where Qualcomm announced a 2 nanometer chip co-developed in India, signalling growing participation of global semiconductor leaders in the country’s technology ecosystem.

The government has allocated Rs 1,000 crore for ISM 2.0 in FY 2026-27, with a strong push towards industry-led research, training centres and workforce skill development aimed at supporting advanced technology development.

Vaishnaw said the government will continue parallel efforts to establish semiconductor fabrication facilities in India and is targeting production capabilities at advanced nodes, including chips as small as 2 nanometers.

He said the next phase of the mission will focus on bringing the full semiconductor value chain into the domestic ecosystem.

Vaishnaw said the government will work towards onboarding equipment manufacturers, chemical suppliers, gas manufacturers and companies working on yield improvement under the ISM 2.0 framework.

“The third focus will be talent. We have been able to create that talent pipeline. The base is very wide now,” Vaishnaw said.

The second phase of the semiconductor mission was announced earlier by Finance Minister Nirmala Sitharaman in the Union Budget, signalling continued policy backing for the strategic sector as India seeks to strengthen its position in global electronics and chip supply chains.