India considers longer ISM phase to strengthen chip supply chains
India is giving its semiconductor mission a major upgrade, considering extending the second phase of the India Semiconductor Mission (ISM) to as long as 12 years.
The goal? Build stronger local chip supply chains and help India stand out in the global tech race.
The first phase kicked off in 2021 with ₹76,000 crore and brought big projects from names like Micron and the Tata Group-Powerchip Semiconductor Manufacturing Corporation of Taiwan joint venture.
ISM supports suppliers, cuts factory incentives
This next phase is all about supporting raw material suppliers, MSMEs, and chip designers so they can compete worldwide, backed by a hefty ₹1.5 trillion investment.
Incentives for building chip factories will drop from 50% to 30%, but there's more help on the way for those making materials and designing chips.
As an official put it, "To help them compete on quality and scale, these firms need guidance and support over a longer period,"