New Delhi, July 16 -- The Union cabinet on Wednesday formally approved the Rs.1.27 lakh crore India Semiconductor Mission (ISM) 2.0, a six-year programme aimed at expanding the country's chip strategy beyond fabrication and packaging into a comprehensive semiconductor ecosystem. The expanded initiative will cover the production of essential machines, chemicals, gases, materials, intellectual property, and talent development. The second phase of the mission is expected to attract around Rs.4 lakh crore in investment, generate Rs.2 lakh crore in production, and yield Rs.1 lakh crore in exports, the government stated. HT reported in March that the ministry of electronics and information technology (MeitY) had sought in excess of Rs.1 lakh crore for the second phase. Prime Minister Narendra Modi stated in a post on social media platform X that the approval of ISM 2.0 reaffirms a long-term commitment to making India a global centre for semiconductor design, manufacturing, and innovation. "Powered by our youth, Semicon 2.0 will strengthen every aspect of the semiconductor ecosystem," Modi wrote. "Semicon 2.0 will attract greater investment, create high-value opportunities for our youth, strengthen supply chains and advance technological self-reliance in critical sectors," Modi added. Government officials said India aims to build a homegrown chip company comparable to Nvidia by 2029. However, officials noted that the country must first master the mature legacy chips that run most of the world's electronics.The government's semiconductor roadmap initially focuses on mature or legacy nodes. Chips in the 28-90 nanometre range account for around 70% of global semiconductor demand and are widely used across automobiles, industrial equipment, power systems, and consumer electronics. The ecosystem must first achieve stability at the 28 nanometre (nm) node, according to electronics and information technology ministry officials. Under ISM 1.0, the Tata Group's Dholera fabrication plant (fab) will produce high-performance computing chips using 28 nm technology, with construction expected to be completed by the second or third quarter of 2028. Official projections indicate a shift toward more advanced technologies in the long term. The government expects India to transition to the 7-3 nm range by 2032 and reach the 2 nm node by 2035. While 2 nm chips are currently being designed in India, the ISM 2.0 framework has designated the 7-3 nm technology path as a primary focus area for research and development, as per the government. Asked when India could produce a firm comparable to Nvidia or Qualcomm, an official stated that the country may have to wait until the rollout of ISM 3.0 to reach that milestone....