India Semiconductor Mission (ISM)

✦Key Features

• ₹76,000 crore incentive package: 50% fiscal support for semiconductor fab; 30% for ATMP/OSAT
• 3 major projects approved (2024): Tata Electronics Dholera fab (28nm), Tata Semiconductor Assembly Assam, CG Power-Renesas Sanand
• India''s first indigenous semiconductor chips expected by 2025-26
• Special incentives for Compound Semiconductors, Silicon Photonics, SiC power devices
• Design Linked Incentive (DLI) scheme: incentivizes IC design startups
• MoU with US, EU, Japan, South Korea for semiconductor supply chain cooperation
• Targets 1 lakh+ jobs; reduction of $200 billion annual electronics import dependency

✓Eligibility Criteria

• Companies/consortia proposing to set up semiconductor fabrication facilities in India.
• Companies/consortia proposing to set up display fabrication facilities in India.
• Companies engaged in compound semiconductors, silicon photonics, and sensor fabs.
• Indian companies and startups involved in semiconductor design and IP development.
• Entities meeting specific technical, financial, and operational criteria as defined by the ISM.

★Benefits

• Reduced reliance on imports for critical electronic components, enhancing 'Atmanirbhar Bharat'.
• Creation of high-tech employment opportunities across manufacturing, design, and R&D sectors.
• Stimulation of economic growth and attraction of significant foreign direct investment (FDI).
• Strengthening India's position in global technology supply chains and national security.
• Development of a vibrant domestic electronics manufacturing ecosystem and innovation hub.

▶Application Process

• Submission of detailed applications and proposals to the India Semiconductor Mission (ISM) portal.
• Thorough evaluation of proposals by a high-level committee of experts.
• Technical and financial due diligence of the applicant entities.
• Approval of eligible projects and signing of Memorandum of Understanding (MoU).
• Disbursement of incentives linked to achieving pre-defined project milestones and performance indicators.
• Ongoing monitoring and review of project progress by the ISM.

₹ Budget Allocation

76000

Funding Ratio (Centre:State): Up to 50% of Project Cost (Central Government) + State Government Incentives (varies by state)

Historical Context

Launched in Dec 2021 with a ₹76,000 crore outlay. It represents India's third major attempt at establishing a semiconductor base since the 1980s.