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EDITORIAL

 INDIA's SEMICONDUCTOR MISSION II


Semiconductor mission 2.0 will expand support beyond chip fabrication and design to cover the wider semiconductor ecosystem, including capital equipment, speciality chemicals, industrial gases, raw materials and other inputs. This time, micro, small, and medium enterprises (MSMEs) and ancillary suppliers will also be brought under the incentive framework programme. The revamped programme will also include a new design-linked incentive(DLI) scheme to allow foreign companies to partner with Indian firms for semiconductor research and design carried out in India. This scheme will help create about 50 deep-tech chip design companies. The expanded mission aims to build resilient semiconductor supply chains amid geopolitical tensions and increasing restrictions on advanced chip technologies. 

The ISM 2.0 is to address the gaps in upstream manufacturing and strengthen India's position in the global semiconductor ecosystem, while building capacity to meet a larger share of domestic demand. As far as the first phase of funds of Rs.76,000 is concerned, it has supported 50% of silicon fabs, compound semiconductor facilities, assembly and testing units and chip design.  As of December 2025, 10 projects with a total investment of Rs.1.60 lakh crore have been approved.

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