India Semiconductor Mission (ISM) 2.0 (Science and Technology)
India Semiconductor Mission (ISM) 2.0 (Science and Technology)
Why In News:
The Finance Ministry's Expenditure Finance Committee (EFC) has cleared an outlay of ₹1.25 lakh crore for India Semiconductor Mission (ISM) 2.0, a significant jump from the ₹76,000 crore allocated under ISM 1.0, with the proposal now headed to the Union Cabinet for final approval.
What is ISM?
The India Semiconductor Mission was launched in December 2021 under the Ministry of Electronics and Information Technology (MeitY) to build a sustainable semiconductor and display ecosystem in India.
It provides fiscal support of up to 50% of project cost for silicon fabs, compound semiconductor facilities, and assembly, testing, marking and packaging (ATMP/OSAT) units, along with support for chip design.
What ISM 2.0 Will Do?
Announced in the Union Budget (February 2026), ISM 2.0 will focus on producing semiconductor equipment and materials domestically.
It will focus on developing full-stack indigenous semiconductor intellectual property (IP), and strengthening domestic and global supply chains, with priority on indigenous chip design, ecosystem partnerships and talent development.
Key Facts for Prelims:
India aims to meet up to 75% of domestic semiconductor demand by 2030.
The Expenditure Finance Committee (EFC) examines the financial viability of a scheme before it is placed before the Cabinet Committee on Economic Affairs (CCEA) for final approval.
Semiconductors are strategic inputs for AI systems, data centres and electric vehicles, making domestic capacity central to reducing import dependence in a globally concentrated supply chain led by Taiwan, South Korea and the United States.
India's electronics manufacturing output is around ₹12 lakh crore annually and rising, supported by over 65 crore smartphone users, underlining the scale of domestic demand that ISM 2.0 seeks to serve indigenously.
The Semicon India Programme is the umbrella framework under which ISM operates, also covering the Modified Scheme for setting up of Compound Semiconductors and incentives for display fabs.