Economy GS 3 In the news 4 times

India Semiconductor Mission

Policy Framework and Rationale

The India Semiconductor Mission (ISM) was launched in 2021 under the Ministry of Electronics and Information Technology (MeitY), with a total financial outlay of ₹76,000 crore. Its central aim is to build a domestic semiconductor and display manufacturing ecosystem, reducing India's near-total dependence on chip imports — a strategic vulnerability exposed sharply by the global chip shortage of 2020–2023.

Key details

ISM launched: 2021; nodal ministry: MeitY (Ministry of Electronics and Information Technology)
Total outlay: ₹76,000 crore (Phase 1); ISM 2.0 launched April 2025 with ₹22,919 crore (later raised to ₹40,000 crore)
Central government incentive: up to 50% of project cost covered for approved semiconductor fab units; state governments provide additional support (land, utilities, incentives)
As of late 2025: 10 semiconductor projects across 6 states approved; total investment commitments exceeding ₹1.6 lakh crore (~$18–19 billion)
ISM's three-track approach:
Semiconductor fabrication (front-end fabs — most capital-intensive; none yet at leading-edge nodes)
Display manufacturing (fab)
Assembly, Testing, Marking, and Packaging (ATMP) — more immediately achievable; India's primary near-term entry point
ISM 2.0 focus: semiconductor equipment and materials manufacturing; full-stack Indian semiconductor IP development; supply chain fortification