The India Semiconductor Mission (ISM) 2.0, a new phase of the erstwhile ISM 1.0 that seeks to deepen domestic semiconductor capabilities in India, will likely go live by the end of May, a senior official from ISM said.
“The first step is the inter-ministerial consultation and the second step to it will be the Cabinet approval. We are currently at the inter-ministerial consultation stage. So the entire process would likely be completed in the next 2 months,” Amitesh Kumar Sinha, Additional Secretary, MeitY & CEO, ISM, told businessline.
He was speaking to businessline on the sidelines of The Hindu Deep Tech Summit 2026 held in Chennai on Monday.
The objective of ISM 2.0 is to create the entire supply chain ecosystem around semiconductor manufacturing in India- from the chemicals, gases, materials and semiconductor equipment that is required for the fabs, he explained.
“And we will try to use the cluster approach in this too with an eye on keeping the supply chain in close proximity to the existing clusters such as those in Gujarat, Odisha, Assam, and others. This will help in seamless supply chain management,” he added.
The official declined to comment on the exact value associated with the scheme as it is still pending approval. A provision of ₹1,000 crore has been made for ISM 2.0 for FY 2026–27, as per the Union Budget.
A lot of global companies from Japan, Korea, Malaysia, the US and Europe have shown interest in India’s semiconductor industry, as seen by the representations made by various trade associations of these countries, he said.
With some initiatives like round tables and by facilitating other meetings, ISM 2.0 will also play the role of matching their needs with a partner in India, he added.
“Around 150 Japanese companies have communicated interest; we will work with them to bring them here in batches based on interest from Indian companies here,” he noted.
The other elements of the semiconductor ecosystem like design, manufacturing and packaging will also continue (as covered under 1SM 1.0), but a key focus of ISM 2.0 will be around development of end-to-end ecosystem and finding technical partners, he noted.
ISM1.0 was approved by the Union Cabinet in December 2021, and was supported by an incentive framework of ₹76,000 crore, offering fiscal support of up to 50 per cent for silicon fabs, compound semiconductor facilities, assembly and testing units, and chip design.
As of December 2025, 10 projects with a total investment of ₹1.60 lakh crore have been approved across 6 states including silicon fabrication units, silicon carbide fabs, advanced and memory packaging facilities, and specialised assembly and testing infrastructure.
Published on April 6, 2026