It was launched in 2021 to provide financial support for investments in semiconductor fabrication, display manufacturing & chip design, strengthening India’s integration into global electronics value chains.

  • Under the Ministry of Electronics and Information Technology.

Main Focus Areas

  • Set up Chip Manufacturing plants(fabs). 
  • Create packaging and testing units. 
  • Supporting startups in chip design. 
  • Training young engineers. 
  • Bring Global companies to Invest in India.

Sub Schemes 

  • Semiconductor Fabs Scheme: Provides up to 50% fiscal support for setting up semiconductor wafer fabrication (fab) units. 
  • Display Fabs Scheme: Offers financial assistance of up to 50% of project cost to set up display fabrication units. 
  • Design Linked Incentive (DLI) Scheme: Promotes semiconductor design startups and Micro Small Medium Enterprises (MSMEs) by offering financial support across product development stages.
India Semiconductor Mission (ISM) 2.0

  • Announced in the Union Budget 2026-27.
  • ISM 2.0 focuses on producing domestic semiconductor equipment and materials, such as wafers, chemicals, and gases, to reduce import dependence. It emphasizes full-stack Indian IP design through expanded Design Linked Incentives (DLI) for fabless startups, alongside strengthening the supply chain amid global tensions. The mission also prioritizes industry-led R&D and training centers for technology and skilled workforce development.

 

Source: The Indian Express