India Cabinet approves 2.19 lakh crore for chips and phones

The Union Cabinet approved a comprehensive package of manufacturing and infrastructure initiatives worth over 2.19 lakh crore rupees on Wednesday, July 15, 2026, aiming to significantly boost India's semiconductor industry, mobile phone production, domestic fertilizer capacity, and key transport networks.

The centerpiece of the approvals is the second phase of the India Semiconductor Mission, termed Semicon 2.0, with a budgetary outlay of 1.27 lakh crore rupees. The program is designed to strengthen the country's semiconductor design and manufacturing ecosystem across six key areas: chip design; semiconductor machinery and materials; establishing more fabrication units; strengthening assembly, testing, marking, and packaging facilities; research and development; and talent creation. Officials stated the initiative aims to build a more comprehensive domestic supply chain, including incentives for suppliers of critical raw materials like minerals and industrial gases.

Building on the first phase of the program, which saw 12 approved projects with cumulative investments exceeding 1.64 lakh crore rupees, Semicon 2.0 is expected to attract around 4 lakh crore rupees in new...