India is accelerating its push to become a key player in the global semiconductor industry with the launch of India Semiconductor Mission (ISM) 2.0, an upgraded plan to expand the country’s chip ecosystem.
While the initial ISM 1.0 focused on attracting investments and building foundational infrastructure for chip fabrication, assembly, and testing, the new phase lays out a broader roadmap. It aims to strengthen domestic capabilities across the entire semiconductor value chain — from research and design to manufacturing and supply chain resilience.
Key Focus Areas of ISM 2.0
- Research and Development: Supporting innovation in chip technologies and materials.
- Design and Intellectual Property: Promoting indigenous chip design and reducing reliance on foreign IP.
- Supply Chain Resilience: Boosting production of essential inputs, equipment, and chemicals for semiconductor manufacturing.
- Domestic Manufacturing: Expanding high-value production beyond assembly and packaging.
- Skill Development: Training engineers and technicians to support a growing semiconductor ecosystem.
The government has approved a substantial budget allocation for this next phase, signaling strong commitment to building a robust and self-reliant semiconductor sector.
Strategic Importance
Semiconductors underpin modern technology, powering everything from smartphones and data centers to electric vehicles and AI systems. By broadening the focus from ISM 1.0, India aims not just to participate in global supply chains but to become a contributor to high-value segments, strengthening technological sovereignty and creating job opportunities.
Looking Ahead
ISM 2.0 represents a transformative step in India’s semiconductor journey. With its expanded scope and strategic focus, the country is positioning itself as a competitive, innovation-driven hub that can play a significant role in the global chip industry in the years to come.
