The India Semiconductor Mission (ISM) is an institution/scheme, established in 2021 as an autonomous business division under the Digital India Corporation, to serve as the nodal agency for the Semicon India Programme. It was created with an initial outlay of ₹76,000 crore to address India's critical reliance on imported semiconductor chips, a vulnerability highlighted by global supply chain disruptions.
The mission works by implementing schemes that provide financial assistance to companies investing in the semiconductor and display ecosystem. Key mechanisms include the Scheme for the Establishment of Semiconductor Fabs in India and the Scheme for Establishing Display Fabs in India, which initially offered up to 50% fiscal support for approved projects. This support covers the establishment of fabrication plants (fabs), as well as packaging units like ATMP (Assembly, Testing, Marking, and Packaging) and OSAT (Outsourced Semiconductor Assembly and Test).
The ISM is a cornerstone of the government's broader Aatmanirbhar Bharat and Make in India initiatives. Related concepts include the Design Linked Incentive (DLI) Scheme, which supports indigenous chip design, and the Digital India RISC-V Programme.
The mission recently transitioned from ISM 1.0 to ISM 2.0, announced in the 2026-27 Union Budget. While ISM 1.0 focused on attracting initial manufacturing and packaging investments, ISM 2.0 represents a strategic shift towards consolidation, advanced manufacturing, and indigenous IP (Intellectual Property). The new phase aims to build a "full-stack" ecosystem by promoting domestic production of semiconductor equipment and materials, and revamping the DLI scheme to encourage R&D within India.