India approves ₹1,27,500 cr ISM 2.0 for semiconductors, rollout uneven
India's big push to make its own semiconductors is moving forward, but not everyone's getting a slice of the pie.
The India Semiconductor Mission 2.0 (ISM 2.0), approved in July 2026 with a massive ₹1,27,500 crore budget, aims to boost chip design and manufacturing.
So far though, most factories are popping up in Gujarat, even though states like Tamil Nadu and Karnataka have plenty of tech talent but no ISM-approved plants yet.
Gujarat leads with 6 ISM projects
Gujarat is way ahead with six major projects (including Tata's $11 billion fab set for 2028) while Assam has scored a big packaging unit and Uttar Pradesh has secured a chip plant.
Odisha, Andhra Pradesh, and Punjab are just starting to get smaller projects. Meanwhile, Tamil Nadu, Karnataka, and Telangana (known for electronics design) have no approved ISM manufacturing projects.
The result? India's chip revolution is growing fast but remains pretty uneven across regions.