The India Semiconductor Mission (ISM) 2.0 was notified on Monday. The domestic chip design industry welcomed the large, updated design-linked incentive component within the new scheme, lauding it for not keeping an upper ceiling on government support through royalty financing, industry sources told ET.

The scheme has been divided into six segments covering designing of chips by Indian firms, setting up units for capital equipment required for chip production, semiconductor fabs,…

The move comes at a time when semiconductors have emerged as a critical strategic resource globally, with the AI boom driving unprecedented demand for advanced chips and memory.