The India Semiconductor Mission (ISM) is an institution established as an independent business division within the Digital India Corporation under the Ministry of Electronics and Information Technology (MeitY). It was launched in 2021 with an initial financial outlay of ₹76,000 crore (ISM 1.0) to address India's reliance on chip imports and establish a domestic semiconductor and display manufacturing base, furthering the goal of Atmanirbhar Bharat.
The initial phase, ISM 1.0, provided fiscal support of up to 50% of the project cost for setting up capital-intensive facilities like semiconductor fabrication plants (fabs), display fabs, and Assembly, Testing, Marking, and Packaging (ATMP) / Outsourced Semiconductor Assembly and Test (OSAT) units. It also included the Design Linked Incentive (DLI) Scheme to boost the domestic semiconductor design ecosystem.
The mission has recently been updated with the approval of Semicon 2.0 (or ISM 2.0) by the Union Cabinet in July 2026, with a significantly increased fiscal outlay of ₹1,27,500 crore. This new phase shifts the focus from merely attracting manufacturing projects to ecosystem deepening. Semicon 2.0 is structured around six strategic pillars, including incentivizing the domestic manufacturing of Machines and Materials (like specialty chemicals and equipment) and deepening the Design of Chips ecosystem, addressing the upstream supply chain gaps identified in the first phase. The ISM is a nodal agency for implementing schemes related to semiconductor and display manufacturing and is connected to broader policies like the Production Linked Incentive (PLI) Scheme for electronics.