India Semiconductor Mission (ISM) The India Semiconductor Mission (ISM) aims to build a strong semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design, while serving as the nodal agency for the efficient and seamless implementation of semiconductor and display schemes. Led by global experts of the Semiconductor and display ecosystem the mission aims to serve as a focal point for the comprehensive, coherent, efficient, and smooth deployment of the Program for Development of Semiconductor and Display Ecosystem in consultation with the Government ministries / departments / agencies, industry, and academia. Vision The vision of ISM is to build a vibrant semiconductor and display design and innovation ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design in a more structured, focused, and comprehensive manner through various mechanisms. Objectives Strategy: Formulation of a comprehensive long-term strategy for developing semiconductors & display manufacturing facilities and semiconductor design ecosystem in the country in consultation with Government ministries / departments / agencies, industry, and academia. Supply Chain: Facilitation in the adoption of trusted electronics through secure semiconductors and display supply chain, including raw materials, specialty chemicals, gases, and manufacturing equipment. Design & Start up: Enabling a multi-fold growth of Indian semiconductor design industry by providing requisite support in the form of Electronic Design Automation (EDA) tools, foundry services and other suitable mechanisms for early-stage start-ups. Intellectual Property: Promoting indigenous Intellectual Property (IP) generation and encourage, enable and incentivize Transfer of Technologies (ToT). Partnership: Enabling collaborations and partnership programs with national and international agencies, industries and institutions for catalysing collaborative research, commercialization and skill development. About SemiconIndia The Union Cabinet had approved the comprehensive Semicon India programme with a financial outlay of INR 76,000 crore for the development of a sustainable semiconductor and display ecosystem in December 2021. Semicon India Program aims to provide attractive incentive support to companies / consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT) and Semiconductor Design. The program will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations. Semicon 2.0 Approved by the Union Cabinet on July 15, 2026. Building on the successful implementation of the first phase of the Semicon India Programme (Semicon 1.0), the Union Cabinet has approved the next phase of Semicon India Programme (Semicon 2.0) with a fiscal outlay of ₹ 1,27,500 crore to accelerate the development of a robust and resilient semiconductor ecosystem in India. The semiconductor industry functions through an extensive global supply chain involving equipment manufacturers, material suppliers, specialty chemical producers, industrial gas companies, packaging firms and service providers. Semicon 2.0 therefore focuses on ecosystem development rather than only designing and manufacturing chips. Objective: Build resilient domestic supply chains. Improve global supply chain stability. Reduce strategic vulnerabilities Increase domestic value addition over time Six Strategic Pillars: Design (Segment: Strategic & Commercial Chips): Building on the initial success in chip design, the focus of Semicon 2.0 is to deepen the design ecosystem. For the strategic sectors requirements, building blocks, such as compute, memory, power, networking, RF and sensors, have been identified for the design and development of the semiconductor IPs/Chips/SoCs which will help in designing and developing new systems. For the commercial sectors, Startups/MSMEs will get seed money (Risk Capital) and IPs/EDA tools support. To accelerate the momentum, Indian Companies and companies owned by OCIs will also be allowed to participate. All eligible companies including the startups and MSMEs will get deployment linked incentive to offset their higher costs of tape-outs. These provisions under Semicon 2.0 are expected to place India as an integral partner in chip and IP design IP ecosystem globally. Machines and Materials (Equipment, Chemicals, Gases, Materials): Companies involved in the manufacturing and R&D of the machines and manufacturing of materials, chemicals and gases that are essential for manufacturing semiconductors will be incentivized. This will lay the foundation for the sustainable growth of the semiconductor industry. This will also enable domestic companies to become part of the global supply chains and help in developing the precision manufacturing industry in the country. Setting up more Fabs (Silicon, Display, Compound, etc.): With the first fab scheduled to be commissioned in 2028, the world is showing greater confidence in India’s semiconductor ability and strategy. Efforts will be made to attract more manufacturers to come to India and set up fabs to manufacture chips. This will include silicon fabs, compound semiconductor fabs, discrete component fabs, display fabs, etc. The CMOS based silicon fabs will be financially supported with 40% of Capex on pari-passu basis and all other fabs will be eligible for 35% of Capex on pari-passu. Further strengthening the ATMP/OSAT industry (Advanced & Legacy Packaging): With the approval of large numbers of ATMP/OSAT units, the world is now looking at India as an alternative hub for packaging of chips. The capacity additions will be actively encouraged with a focus on getting some of the most advanced packaging technologies in India. Advance packaging will be financially supported with 35% of Capex on pari-passu and other conventional packaging will be eligible for financial support of 25% of Capex on pari-passu basis. Research & Development (Advanced Technologies): The semiconductor journey has started with 28nm-110 nm as the node. Now, the focus will be on developing more advanced nodes and other advanced technologies in collaboration with leading R&D centres within and outside India. Talent development (Design & Manufacturing Talent): With 320 universities training students on complex chip design using the latest EDA tools, around 70,000 students have already been trained. The holistic experience for students from chip design to fabrications and packaging of chips will be further expanded to include more institutes/colleges. Further, the industry will be actively engaged in deepening the clean room, fab construction and other ecosystem training as well. Semicon 1.0 Approved and Launched by the Government of India in December 2021. Government of India launched Semicon India Programmee (Semicon 1.0), with an outlay of ₹76,000 crore to build a domestic semiconductor and display manufacturing ecosystem, under following schemes: Semiconductor Fabs Display Fab Compound Semicondcutor (ATMP/OSAT) Fab Design Linked Insentive (DLI) Schemes References India Semiconductor Mission (ISM) portal PIB