Indian semiconductor policy stack
Central schemes (ISM 1.0, ISM 2.0, DLI, ECMS, PLI) and state-level incentive layers, with structured beneficiary mapping.
Central schemes
India Semiconductor Mission (ISM 1.0)
MeitY · Launched 2021-12-15 · Outlay ₹76.0k cr
₹76,000 crore programme to develop India's semiconductor and display manufacturing ecosystem, covering silicon fabs, display fabs, compound semiconductors, silicon photonics, sensors, MEMS, ATMP/OSAT and design.
Up to 50% of project cost on a pari-passu basis for fabs and display fabs; structured incentive packages for OSAT, compound semis and design.
ISM 2.0
MeitY · Launched 2026-02-01
Announced in Union Budget 2026-27 to deepen semiconductor manufacturing, R&D and components ecosystem. Specific outlay and design parameters under finalization.
To be detailed; expected to extend ISM 1.0 framework with R&D and component-ecosystem focus.
Electronics Components Manufacturing Scheme (ECMS)
MeitY · Launched 2025-04-01 · Outlay ₹40.0k cr
Scheme to boost domestic manufacturing of electronics components including PCBs, multilayer PCBs, sub-assemblies and capital goods. Outlay proposed to increase to ₹40,000 crore in Budget 2026-27.
Capex-linked + employment-linked incentives across components and capital equipment.
Design Linked Incentive (DLI) Scheme
MeitY · Launched 2022-01-01 · Outlay ₹1.0k cr
Reimbursement-based scheme supporting Indian fabless startups and design companies through product design, deployment and chip design infrastructure.
Up to 50% reimbursement on eligible expenditure during the development phase; deployment-linked incentive on net sales.
Chips to Startup (C2S) Programme
MeitY · Launched 2022-03-01 · Outlay ₹230 cr
Talent-development programme to train ~85,000 engineers in VLSI and embedded systems chip design across institutions.
EDA tools, training infrastructure and tape-out support to academic institutions.
PLI Scheme for IT Hardware
MeitY · Launched 2023-05-29 · Outlay ₹17.0k cr
Production-linked incentives for laptops, tablets, all-in-one PCs, servers and ultra-small form factor devices.
5-6% incentive on net incremental sales over base year.
PLI Scheme for Large-Scale Electronics (Mobile)
MeitY · Launched 2020-04-01 · Outlay ₹41.0k cr
PLI scheme covering mobile phones and specified electronic components. The flagship scheme that anchored EMS scale-up in India.
4-6% incentive on net incremental sales.
State pages
Per-state breakdown of land, power, water, stamp duty, employment subsidy and approved projects.
First mover in Indian semiconductor manufacturing. Hosts 4 of 6 ISM-approved projects. Best-developed industrial infrastructure for fabs.
Hosts India's first North-East semiconductor project. Tata's Jagiroad OSAT anchor.
Aggressive entry via Jewar SEZ adjacent to upcoming international airport. Recent ISM approval for HCL-Foxconn.
Largest electronics manufacturing base in India (Foxconn, Pegatron, Sanmina). Strong PCB/PCBA cluster but no ISM-approved fab/OSAT yet.
Largest pool of design talent in India. Bangalore is global ER&D hub. Strong fabless and design services ecosystem; manufacturing thin.
Strong design services and IT cluster in Hyderabad. Active push for semiconductor manufacturing investment.
Lower-cost alternative to Gujarat with abundant water and surplus power; nascent semiconductor profile.
Strong industrial base; saw failed Vedanta-Foxconn fab proposal exit to Gujarat. Continues to bid for OSAT and components projects.
Beneficiary engine
Structured mapping of 18 beneficiaries across central and state policies, with confirmation probability and benefit type.
| Beneficiary | Policy | Segment | Benefit | Amount | Probability |
|---|---|---|---|---|---|
| Tata Electronics (Dholera Fab) | ISM 1.0 | Fabrication / Foundry | Capex subsidy | ₹45.0k cr | Confirmed |
| Tata Electronics (Jagiroad OSAT) | ISM 1.0 | OSAT / ATMP | Capex subsidy | ₹13.5k cr | Confirmed |
| Micron Technology (Sanand ATMP) | ISM 1.0 | OSAT / ATMP | Capex subsidy | ₹11.3k cr | Confirmed |
| CG Power and Industrial Solutions | ISM 1.0 | OSAT / ATMP | Capex subsidy | ₹3.8k cr | Confirmed |
| Kaynes Semicon | ISM 1.0 | OSAT / ATMP | Capex subsidy | ₹1.6k cr | Confirmed |
| HCL-Foxconn JV (Jewar) | ISM 1.0 | OSAT / ATMP | Capex subsidy | ₹1.9k cr | Confirmed |
| Tata Electronics (Dholera + Sanand) | Gujarat Semiconductor Policy | Fabrication / Foundry | Power tariff | — | Confirmed |
| All Gujarat semiconductor projects | Gujarat Semiconductor Policy | OSAT / ATMP | Stamp duty | — | Confirmed |
| All Gujarat semiconductor projects | Gujarat Semiconductor Policy | Ultra Clean Water | Water | — | Confirmed |
| HCL-Foxconn (Jewar) | UP Semiconductor Policy | OSAT / ATMP | Land | — | Confirmed |
| HCL-Foxconn (Jewar) | UP Semiconductor Policy | OSAT / ATMP | Capex subsidy | — | Likely |
| Dixon Technologies | PLI for Mobile Manufacturing | EMS / Box Build | PLI | — | Confirmed |
| Kaynes Technology | PLI for Mobile Manufacturing | EMS / Box Build | PLI | — | Likely |
| Syrma SGS Technology | Electronics Components Manufacturing Scheme | PCB / PCBA | Capex subsidy | — | Likely |
| Amber Enterprises | Electronics Components Manufacturing Scheme | EMS / Box Build | Capex subsidy | — | Likely |
| Avalon Technologies | Electronics Components Manufacturing Scheme | Semiconductor Equipment Components | Capex subsidy | — | Possible |
| MosChip Technologies | Design Linked Incentive Scheme | Design / Fabless / IP | DLI | — | Likely |
| Cyient | Design Linked Incentive Scheme | Design / Fabless / IP | DLI | — | Possible |
State policy detail
Gujarat Semiconductor Policy 2022-27
Government of Gujarat · 2022-09-01
Capital subsidy on top of central ISM, land at concessional rates, power tariff and water support for fabs, OSAT and display projects.
40% of central ISM capital subsidy as additional state subsidy; concessional electricity tariff; subsidized water; stamp duty exemption.
Uttar Pradesh Semiconductor Policy
Government of Uttar Pradesh · 2024-01-01
State incentive layer covering capital subsidy, land at Jewar, power tariff, employment subsidy and stamp duty exemption.
Capex subsidy on top of ISM, land at Jewar SEZ, electricity duty exemption, employment incentives.
Tamil Nadu Electronics Policy
Government of Tamil Nadu · 2023-04-01
Capital and operational subsidies for electronics, EMS and emerging semiconductor packaging in TN clusters.
Capex subsidy, payroll subsidy, R&D grants.