The India Semiconductor Mission (ISM) is the Government of India’s programme to build a chip and display manufacturing industry. It was approved on 15 December 2021 with ₹76,000 crore (Semicon 1.0). Its second phase, ISM 2.0 / Semicon 2.0, was approved on 16th September 2026 with ₹1,27,500 crore and notified on 31 August 2026. As of July 2026, 12 manufacturing projects worth over ₹1.64 lakh crore have been approved, and three are already in commercial production.
Last reviewed: 14 September 2026. Every figure on this page links to an official PIB release or ism.gov.in. Where official sources disagree, we say so.
ISM at a glance
| Run by | Ministry of Electronics and IT (MeitY), through ISM, a division of Digital India Corporation |
|---|---|
| Approved | 15 December 2021 (programme launched January 2022) |
| Semicon 1.0 outlay | ₹76,000 crore |
| Semicon 2.0 (ISM 2.0) outlay | ₹1,27,500 crore, approved 16th September 2026, notified 31 August 2026 |
| Approved projects | 12 manufacturing projects, over ₹1.64 lakh crore (July 2026) |
| In commercial production | Micron (Sanand), Kaynes Semicon (Sanand), CG Semi (Sanand) |
| First silicon fab | Tata Electronics–PSMC, Dholera, scheduled for 2028 |
Semicon 1.0: the original schemes
The 2021 programme had four incentive schemes plus a plan for the government’s own fab:
- Semiconductor fabs: 50% of project cost for all technology nodes (made uniform in September 2022).
- Display fabs: 50% of project cost.
- Compound semiconductors, silicon photonics, sensors, discrete fabs and ATMP/OSAT: raised from 30% to 50% of capital expenditure in September 2022.
- Design Linked Incentive (DLI): up to 50% of eligible design expenditure (capped at ₹15 crore per application) plus a deployment-linked incentive of 6%–4% of net sales for five years (capped at ₹30 crore).
- SCL Mohali: modernisation and commercialisation of the Semi-Conductor Laboratory, the government’s existing 180nm fab.
Sources: PIB, 15 Dec 2021, PIB, 21 Sep 2022.
What is ISM 2.0 (Semicon 2.0)?
ISM 2.0 was first announced in the Union Budget 2026-27 on 1 February 2026. The Cabinet approved it as Semicon 2.0 on 16th September 2026 with ₹1,27,500 crore. It moves beyond “build fabs” to the whole supply chain, organised in six pillars:
- Design: support for Indian chip and IP design companies.
- Machines and materials: equipment makers and suppliers of chemicals and gases.
- More fabs: silicon, compound, discrete and display fabs.
- ATMP/OSAT: assembly, testing and packaging.
- Research and development: moving beyond today’s 28nm–110nm nodes.
- Talent development: deeper in-college training and industry-led ecosystem training.
For the design pillar, the notified scheme on ism.gov.in lists milestone-linked support for startups and MSMEs of 50% of project cost or ₹15 crore (whichever is lower), and a deployment-linked incentive of 9% of net sales for five years, capped at ₹30 crore per application. The scheme accepts applications for an initial three years. We have not yet verified the incentive rates for the other pillars, so they are not listed here.
Sources: PIB, Budget 2026-27, PIB, Cabinet approval 15 Jul 2026, ism.gov.in, Semicon 2.0.
All 12 approved semiconductor projects
| Company | Location | Type | Investment | Status (Sep 2026) |
|---|---|---|---|---|
| Tata Electronics with PSMC (Taiwan) | Dholera, Gujarat | Silicon (CMOS) fab | ₹91,526 cr | Under construction; first fab scheduled for 2028 |
| Micron Technology | Sanand, Gujarat | ATMP (DRAM/NAND assembly and test) | ₹22,516 cr | In commercial production (inaugurated 28 Feb 2026) |
| Tata Semiconductor Assembly and Test (TSAT) | Jagiroad, Assam | ATMP/OSAT | ₹27,120 cr | Under construction |
| CG Semi (CG Power, Renesas, Stars Microelectronics) | Sanand, Gujarat | OSAT | ₹7,584 cr | In commercial production (July 2026) |
| Kaynes Semicon | Sanand, Gujarat | OSAT | ₹3,307 cr | In commercial production (March 2026) |
| HCL–Foxconn (Vama Sundari) | Near Jewar, Uttar Pradesh | Display driver IC unit | ₹3,706 cr | Under construction |
| SiCSem with Clas-SiC (UK) | Bhubaneswar, Odisha | Silicon carbide compound fab + packaging | ₹2,066 cr | Under construction |
| 3D Glass Solutions | Odisha | Advanced packaging (glass substrates) | ₹1,943 cr | Under construction |
| Continental Device India (CDIL) | Mohali, Punjab | Discrete power devices | ₹117 cr | Under construction / expansion |
| ASIP with APACT (Korea) | Andhra Pradesh | OSAT | ₹480 cr | Under construction |
| Crystal Matrix | Dholera, Gujarat | GaN fab + Mini/Micro-LED display modules | ₹3,936 cr (combined with Suchi) | Approved May 2026 |
| Suchi Semicon | Surat, Gujarat | OSAT for discrete semiconductors | (combined above) | Approved May 2026 |
Investment figures are the latest official numbers (April 2026) and differ slightly from the amounts announced at approval. Sources: PIB, 1 Apr 2026, PIB, 5 May 2026, PIB, 15 Jul 2026.
What ISM means for VLSI students and engineers
Most of the 12 projects are manufacturing and packaging plants. They create process, equipment, test and quality jobs, mostly in Gujarat, Assam, Odisha and Uttar Pradesh. Chip design work (RTL, verification, physical design, DFT) is still concentrated in Bengaluru, Hyderabad and Noida, and ISM supports it through three official channels:
- Chips to Startup (C2S): a ₹250 crore MeitY programme targeting 85,000 industry-ready chip design professionals. About 68,000 students had been trained by August 2026.
- Free EDA tools for colleges: tools from 8 companies are installed in more than 315 institutions, and 211 chips had been taped out by 75 institutions by April 2026. Ask your department whether your college is registered.
- DLI design startups: 24 chip and SoC design projects have been approved, and 105 startups and MSMEs have EDA access. Small design companies like these are a realistic place to look for internships.
Be careful with headline job numbers. There is no single official figure for “VLSI jobs created by ISM”. Individual approvals give their own estimates; for example, the two May 2026 approvals expect 2,230 skilled jobs.
Sources: PIB factsheet, Aug 2026, PIB, 1 Apr 2026.
Timeline
- 15 Dec 2021: Cabinet approves the ₹76,000 crore Semicon India Programme and sets up ISM.
- 21 Sep 2022: Support made a uniform 50% for fabs at all nodes; 50% of capex for packaging and compound fabs.
- Jun 2023: Micron’s Sanand ATMP becomes the first approved project.
- 29 Feb 2024: Tata–PSMC Dholera fab, Tata TSAT Assam and CG Power Sanand approved.
- 2 Sep 2024: Kaynes Semicon, Sanand approved.
- 14 May 2025: HCL–Foxconn display driver unit near Jewar approved.
- 12 Aug 2025: SiCSem, CDIL, 3D Glass Solutions and ASIP approved (10 projects).
- 1 Feb 2026: Union Budget announces ISM 2.0.
- 28 Feb 2026: Micron Sanand starts commercial production.
- Mar 2026: Kaynes Semicon starts commercial production.
- 5 May 2026: Crystal Matrix and Suchi Semicon approved (12 projects).
- Jul 2026: CG Semi starts commercial production.
- 15 Jul 2026: Cabinet approves Semicon 2.0 (₹1,27,500 crore).
- 31 Aug 2026: Semicon 2.0 notified.
- 17–19 Sep 2026: SEMICON India 2026, New Delhi.
- 2028: First silicon fab (Dholera) scheduled for commissioning.
Where official figures disagree
- “ISM 2.0” (Budget) and “Semicon 2.0” (Cabinet, ism.gov.in) are the same programme.
- Project investment amounts were revised slightly between approval and April 2026; we use the April 2026 figures.
- The number of institutions with EDA tools appears as 305, 315 or 320 depending on the release date.
- Press reports of a lifecycle extended to 12 years and a ₹4 trillion investment goal do not appear in PIB releases, so we have not included them.
Follow new approvals and weekly developments in the ChipXpert Semiconductor Newsroom.
Frequently asked questions
What is the India Semiconductor Mission?
The India Semiconductor Mission (ISM) is the Government of India's nodal agency for building a semiconductor and display manufacturing ecosystem. It was approved by the Union Cabinet on 15 December 2021 with an outlay of ₹76,000 crore and works as an independent business division of Digital India Corporation under MeitY.
What is ISM 2.0?
ISM 2.0 is the second phase of the programme, officially called Semicon 2.0. The Union Cabinet approved it on 16th September 2026 with an outlay of ₹1,27,500 crore across six pillars: design, machines and materials, fabs, ATMP/OSAT, R&D and talent development. The scheme was notified on 31 August 2026.
How many semiconductor projects has ISM approved?
As of July 2026, 12 manufacturing projects in six states worth over ₹1.64 lakh crore: one silicon fab, compound-semiconductor and display fabs, and several packaging (ATMP/OSAT) units. Micron, Kaynes and CG Semi are in commercial production.
When will India's first semiconductor fab start?
Tata Electronics is building India's first commercial silicon fab in Dholera, Gujarat, with PSMC of Taiwan. The government says the first fab is scheduled for commissioning in 2028.
How much support does the government give?
Under Semicon 1.0, silicon and display fabs receive 50% of project cost, and compound, discrete and ATMP/OSAT units receive 50% of capital expenditure, both on a pari-passu basis. The Design Linked Incentive covers up to 50% of eligible design expenditure, capped at ₹15 crore per application.
How does ISM affect VLSI and chip design careers?
Talent is an explicit pillar. The Chips to Startup programme targets 85,000 chip design professionals (about 68,000 trained so far), free EDA tools are installed in more than 315 institutions, and 24 design startups have DLI support. There is no official single figure for VLSI jobs created, so treat any such number you see with caution.
