India Semiconductor Mission (ISM) – Economic Survey 2025-26
**Objective:** Build a vibrant semiconductor and display ecosystem in India to achieve self-reliance in electronics manufacturing and reduce strategic import dependence. **Key Achievements (Economic Survey 2025-26):** - 10 semiconductor projects approved across 6 states - Total investment of approximately ₹1.60 lakh crore - By 2029, India expected to design and manufacture chips for 70-75% of domestic applications - Incentive framework of ₹76,000 crore (up to 50% fiscal support) - Electronics Components Manufacturing Scheme outlay raised to ₹40,000 crore **Approved Projects Include:** - Silicon fabrication units (fabs) - Silicon carbide fabs - Advanced and memory packaging facilities - Specialised assembly and testing infrastructure (OSAT) **Key Features:** - Up to 50% fiscal support for silicon fabs, compound semiconductor facilities, OSAT units - Design Linked Incentive (DLI) scheme for chip design startups - ISM 2.0 launched for equipment/materials manufacturing and full-stack Indian IP - Industry-led research and training centres for workforce development **Ministry:** Ministry of Electronics and Information Technology (MeitY). **Launched:** December 2021 (ISM 1.0); February 2026 (ISM 2.0). **Official Website:** ism.gov.in
- India Semiconductor Mission (ISM) aims to build a semiconductor and display ecosystem for self-reliance in electronics manufacturing under MeitY.
- 10 semiconductor projects approved across 6 states with total investment of approximately ₹1.60 lakh crore and incentive framework of ₹76,000 crore.
- By 2029, India expected to design and manufacture chips for 70-75% of domestic applications.
- Provides up to 50% fiscal support for silicon fabs, compound semiconductor facilities, and OSAT units; includes Design Linked Incentive (DLI) scheme for chip design startups.
- ISM 1.0 launched December 2021; ISM 2.0 launched February 2026 for equipment/materials manufacturing and full-stack Indian IP.
- Electronics Components Manufacturing Scheme outlay raised to ₹40,000 crore.
How many semiconductor projects have been approved under ISM?
As per Economic Survey 2025-26, 10 semiconductor projects have been approved across 6 states with total investment of approximately ₹1.60 lakh crore.
What is the size of the incentive framework under ISM?
The incentive framework stands at ₹76,000 crore, offering up to 50% fiscal support for silicon fabs, compound semiconductor facilities, and OSAT units.
What is India's chip self-reliance target by 2029?
By 2029, India is expected to design and manufacture chips for 70-75% of domestic applications, sharply reducing strategic import dependence in electronics.
Which types of projects have been approved under ISM?
Approved projects include silicon fabrication units (fabs), silicon carbide fabs, advanced and memory packaging facilities, and specialised assembly and testing infrastructure (OSAT).
What is the Design Linked Incentive (DLI) scheme under ISM?
The Design Linked Incentive (DLI) scheme supports chip design startups, complementing fiscal support for fabs and OSAT units under the ISM framework.
When was ISM launched and when did ISM 2.0 come in?
ISM 1.0 was launched in December 2021 by MeitY, while ISM 2.0 was announced in February 2026 to focus on equipment, materials, and full-stack Indian IP.
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