India weighs VC co-investment under ISM 2.0 to deepen electronics supply chain
The government is considering co-investing with venture capital funds under India Semiconductor Mission 2.0, alongside support for chip design, manufacturing, materials, R&D and talent. The ₹1.27 lakh crore programme could strengthen domestic electronics supply resilience for consumer-device brands.
What happened
India Semiconductor Mission (ISM) 2.0 · India plans ISM 2.0 co-investment with venture capital funds to expand semiconductor design, manufacturing, materials,
Key facts
- ₹1,27,500 crore ISM 2.0 budget outlay
- ₹1,000 crore allocated for ISM 2.0 in Union Budget FY 2026-27
- 24 semiconductor design projects approved under ISM 1.0
- 105 startups granted EDA-tool access
- 12 manufacturing units approved under ISM 1.0
- More than ₹1.64 lakh crore cumulative investment
- Below 28 nanometers technology focus
Why this matters
Strategic buyers should map Indian semiconductor and supply-chain startups now, as public-backed growth capital may accelerate partnership, acquisition and minority-investment opportunities.