According to estimates by the Ministry of Electronics and Information Technology (MeitY), semiconductor companies eligible for incentives under the India Semiconductor Mission (ISM) will collectively invest Rs 312.99 billion by financial year 2026-27 (FY27), amounting to nearly a fifth of the total committed investment of approximately Rs 1.65 trillion under the scheme.
Cumulative investment by five semiconductor companies stood at Rs 157.99 billion through FY26, with MeitY estimating a further Rs 155 billion to be deployed in FY27.
In the first two years of the scheme, FY25 and FY26, the five companies collectively invested Rs 56.92 billion, with the remainder disbursed by central and state governments. Now, in FY27, the government expects semiconductor companies to invest Rs 70 billion in aggregate, with the bulk directed towards procuring equipment for the plants.
Additionally, the government is working on ISM 2.0, which is expected to have a larger outlay of around Rs 1 trillion and will focus on developing the ecosystem for raw material vendors supporting fabrication and outsourced semiconductor assembly and test plants. Incentives under the Electronic Components Manufacturing Scheme are also being extended to support manufacturers of semiconductor industry equipment.
