Union Information Minister Ashwini Vaishnaw on Wednesday said that the Cabinet has expanded a key semiconductor programme by approving fresh capital of Rs 1.28 trillion (Rs 1,27,500 crore) and approved an outlay of Rs 625 billion (Rs 62,500 crore) for mobile phone manufacturing.

At a media briefing following a Cabinet meeting chaired by Prime Minister Narendra Modi, Vaishnaw said that the government had approved the ‘Semicon 2.0’ programme for the development of India’s semiconductor design and manufacturing ecosystem.

Hailing the programme’s announcement, PM Modi said that with Semicon 2.0 India’s semiconductor journey has become more vibrant.

“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,” he said.

Addressing the media briefing, Vaishnaw said that chip production had already begun at three plants.

“This industry is a strategic industry. Many countries of the world have already declared it a strategic industry… Of the 12 approved semiconductor plants under Semicon 1.0, commercial production at three plants has already started,” said Vaishnaw, who also holds the Electronics and IT portfolio in the Cabinet.