India’s government has approved a ₹1.25 Lakh crore budget for the second phase of the India Semiconductor Mission (ISM 2.0), marking a strategic shift from semiconductor manufacturing to electronics systems design. The new phase aims to support chip design startups through a grant-plus-equity funding model, reflecting a targeted approach to foster innovation in this segment, according to inc42.com.
The original ISM programme focused primarily on grant-based funding, subsidised Electronic Design Automation (EDA) tools, and design infrastructure to boost semiconductor manufacturing. With ISM 2.0, the government intends to prioritise chip design startups, offering a combination of grants and equity investments. While the broad contours of ISM 2.0 have Cabinet approval, detailed operational guidelines on eligibility and investment terms are still awaited, leaving startups with questions about implementation, inc42.com reports.
India has long been recognised as a global hub for semiconductor design, with startups such as Mindgrove Technologies, NetraSemi, iVP Semi, Saankhya Labs, Morphing Machines, InCore Semiconductors, and BigEndian Semiconductors contributing to the ecosystem. The shift in focus to chip design aligns with India's strengths and aims to carve out a niche in the global semiconductor value chain, differentiating it from full-scale manufacturing efforts.
The government’s approval of the ₹1.25 Lakh crore budget for ISM 2.0 sets the stage for a new phase in India’s semiconductor ambitions. Startups and industry stakeholders now await the release of detailed operational guidelines that will clarify the scope and terms of support under the revamped mission, as reported by inc42.com.