Fabs To Design-Linked Incentive Scheme — India To Sharpen Semiconductor Push, Says MeitY Secretary

With global supply chains under pressure and technology demand rising, India is preparing the next phase of its semiconductor strategy under India Semiconductor Mission (ISM) 2.0. The government has outlined a sharper, more targeted approach that goes beyond broad policy support to focus on specific priorities such as new fabs, advanced packaging and design-led innovation, said S Krishnan, the secretary of the Ministry of Electronics and Information Technology (MeitY).

In an interview with NDTV Profit, the MeitY Secretary said that India will be focusing on more fabrication facilities across the country. These highly specialised plants, where microchips and integrated circuits are produced, are critical to achieving self-reliance in electronics manufacturing.

Krishnan said that in addition to fabs, the focus will also be on advanced packaging. The aim will be to move up the value chain when it comes to packaging.

Another critical pillar of ISM 2.0 will be the revamped design-linked incentive (DLI) scheme. The government is working to make the scheme more attractive for fabless companies, providing them with access to risk capital and a framework that allows them to scale operations, said Krishnan.

He also explained that unlike the earlier broader version, the new scheme will now be more sharply focused on sub-segments, with a view to delivering real products and systems from India.

The government also recognises the need for a stronger ecosystem. As manufacturing capacity expands, suppliers, design houses, and ancillary service providers will play a vital role in ensuring long-term resilience. According to Krishan, industry enthusiasm when it came to semiconductors was very strong, with a wide range of companies—both domestic and foreign—eager to explore opportunities in the Indian semiconductor landscape and establish a base in the country.