The next version of India's chip incentive scheme, India Semiconductor Mission 2.0, will place a sharper focus on developing the ancillary ecosystem around semiconductor plants, including gas and chemical suppliers.
"ISM 2.0 will integrate ancillary industries, which are critical to the success of fabs and OSATs. Many of these are small and medium enterprises that stand to benefit," said S Krishnan, Secretary, Ministry of Electronics and IT. He added that discussions are underway with the Finance Ministry on the financial layout of the scheme, though the final size has not yet been decided.
The enhanced scheme will also provide support for capital equipment and materials, alongside continuing incentives for fabs and OSATs. Officials said the idea is to deepen the ecosystem, ensure self-reliance, and improve cost competitiveness, which is pegged to be 15–30% cheaper than global peers.
On the sidelines of Semicon India, IT Minister Ashwini Vaishnaw said pilot lines for three chip projects are nearly complete and India-made chips will be a reality in 2025. He confirmed that land has been identified for the HCL-Foxconn JV fab, with work set to begin shortly, and that a modernisation package for the government-owned Semiconductor Laboratory (SCL) will soon be taken to the Cabinet.
Vaishnaw also underlined that clean energy, semiconductors, biotech, quantum, and space will be priority sectors under the upcoming $1 billion deeptech fund, called the India Deeptech Alliance, announced today at Semicon India 2025.
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