India expected to unveil semiconductor mission 2.0, 30% capital subsidy
India is expected to announce detailed guidelines for the India Semiconductor Mission (ISM) 2.0 this week to help the country make more of its own chips, offering a 30% capital subsidy to companies making semiconductor materials and equipment.
There's also a new five-year incentive plan focused on boosting local manufacturing, assembly, and testing, so more of the chip-making process happens right here.
ISM 2.0 PLI 10%-2%, 50% cap
The production-linked incentive (PLI) scheme starts with a 10% reward on domestic materials used in year one, but this gradually drops each year to reach 2% by year five.
Government support for capital spending is capped at 50% of eligible capital expenditure.
Beyond money, ISM 2.0 puts extra focus on research and building up testing and assembly facilities, so India can rely less on imports and build a stronger tech future at home.