- India plans to launch ISM 2.0 by May with Rs 1-1.2 lakh crore funding allocation
- ISM 2.0 funding exceeds Rs 76,000 crore allocated in the first phase
- The mission will expand beyond chip design to include equipment and raw materials
The government is gearing up to roll out an expanded version of the India Semiconductor Mission or the ISM 2.0 by May, according to sources to NDTV Profit. The government is planning an outlay of anywhere between Rs 1 lakh crore to Rs 1.2 lakh crore for this project, according to people familiar with the matter.
The inter-ministerial consultations are currently underway, as the Ministry of Electronics and Information Technology (MeitY) await the final approval from the Finance Ministry.
The proposed funding is said to be substantially higher than the Rs 76,000 crore allocated for the first phase of the semiconductor mission.
Through ISM 2.0, the government is looking to broaden its scope beyond chip fabrication and design. It looks to add support for capital equipment, raw materials and other critical inputs for semiconductor manufacturing, especially at a time when global supply chain has taken a hit due to ongoing geopolitical uncertainty.
Meanwhile, gas suppliers, specialty chemical makers, MSMEs and other ancillary players will form an integral part of the revamped framework as well.
Another key feature of the second phase is a revamped design-linked incentive programme or DLI 2.0, which promises to allow foreign companies to partner with Indian firms for chip research and development carried out in India. This will hope to accelerate innovation and enable the emergence of as many as 50 deeptech semiconductor design firms over the coming years.
Officials said ISM 2.0 is aligned with the government's longer-term goal of reducing dependence on imported chips and strengthening India's role in global semiconductor value chains. Under the mission, India is expected to develop chip design and manufacturing capabilities sufficient to meet nearly 75% of its domestic semiconductor demand by 2030.
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