The government is reportedly considering extending the tenure of the second phase of the India Semiconductor Mission (ISM) to as long as 12 years, up from the current five-year framework. The longer timeline is intended to align with the extended gestation periods and sustained support required for companies supplying raw materials to chip manufacturing and packaging units.
The second phase of the ISM, which could carry an outlay of nearly Rs 1.5 trillion, is expected to place greater emphasis on financial and non-financial incentives for composite semiconductor units as well as manufacturers of gases, ingots and other raw materials used in chip fabrication and packaging. Further, a special focus is also likely on strengthening domestic chip design capabilities, particularly for companies that retain intellectual property rights in India.
