India Semiconductor Mission (ISM) 2.0
India Semiconductor Mission 2.0 (Semicon 2.0) (Science and Technology)
Why In News:
India Semiconductor Mission (ISM) 2.0, was notified by the Ministry of Electronics and Information Technology (MeitY) on 31 August 2026, with an outlay of about ₹1.27 lakh crore.
Semicon 2.0: Key Features
The scheme moves beyond semiconductor fabrication to cover chip design, advanced packaging, semiconductor materials, equipment, R&D and talent development.
Its framework is organised into six pillars and ten categories, covering different stages of the semiconductor value chain.
Compared with ISM 1.0, the second phase places greater emphasis on building a complete domestic semiconductor ecosystem rather than focusing mainly on fabrication capacity.
Support for Design, Packaging and R&D
Design Infrastructure Support will provide eligible startups and MSMEs access to Electronic Design Automation (EDA) tools and multi-project wafer fabrication services.
Eligible semiconductor design startups and MSMEs can receive seed funding of up to ₹15 crore, subject to a ceiling of 50% of project cost.
Advanced semiconductor R&D and talent-development projects can receive assistance covering up to 75% of project costs, subject to scheme conditions.
Support extends to OSAT (Outsourced Semiconductor Assembly and Test)/ATMP (Assembly, Testing, Marking, and Packaging) facilities, semiconductor materials and equipment manufacturers, research institutions and training centres.
The broader approach seeks to connect design → fabrication → assembly, testing and packaging → materials and equipment, thereby strengthening the semiconductor value chain.
Progress under ISM 1.0
ISM 1.0, launched in December 2021, was established to develop India's semiconductor and display ecosystem under the broader Digital India framework.
Under the first phase, 12 semiconductor and display projects were approved across Gujarat, Assam, Uttar Pradesh, Punjab, Odisha and Andhra Pradesh.
Approved projects have attracted cumulative committed investment exceeding ₹1.64 lakh crore.
Key Initiatives for the Semiconductor Sector
Design Linked Incentive (DLI) Scheme: Provides financial and technical support to domestic semiconductor design companies, including fabless firms and semiconductor IP developers, while promoting the expansion of skilled design manpower.
Digital India RISC-V Programme (DIR-V): Promotes the development of indigenous processors based on the open-source RISC-V architecture, reducing dependence on proprietary processor technologies and licensing costs.
Chips to Startup (C2S) Programme: Enables academic institutions, startups and researchers to access semiconductor design tools, training and fabrication facilities, thereby strengthening India’s chip-design ecosystem.
Indigenous Microprocessor Development: Supports the development of domestic microprocessors such as DHRUV64, aimed at building indigenous processor capabilities and reducing dependence on imported technologies.