Cabinet Approves ₹1.9 Lakh Crore for Semiconductor & Mobile Manufacturing Push

The Union Cabinet has approved two flagship programmes worth nearly ₹1.9 lakh crore, marking a strategic shift from basic electronics assembly to building a complete, deeply localized domestic ecosystem. 1. India Semiconductor Mission (ISM) 2.0 (₹1.27 Lakh Crore) Expanded Scope: Covers chip design, equipment, materials, fabrication, and advanced packaging. Key Upgrades: Now open to large companies (not just startups) and aims to advance India’s tech curve from 28nm to 7nm, and eventually 2nm. Targets: Attract ~₹4 lakh crore in investments, with the first semiconductor fab expected by 2028, building on the 12 projects already approved in Phase 1. 2. Mobile Phone Manufacturing Scheme - MPMS (₹62,500 Crore) Focus: A five-year scheme (FY27–FY31) succeeding the earlier PLI, shifting focus to higher domestic value addition. Incentives: Offers 2.25%–5% on eligible sales, with additional bonuses for sourcing domestic components and investing in indigenous R&D. Targets: Double domestic value addition from ~24% to ~45%, generate ₹39 lakh crore in production, and capture a 30%+ share of global mobile production. Strategic Outlook: Industry leaders strongly welcome the policy certainty. By incentivizing deeper localization, component manufacturing, and advanced R&D, these schemes aim to fortify India’s supply chain resilience and firmly position the country as a globally competitive electronics hub.