Figure 1: Automated silicon wafer processing in a cleanroom fabrication facility. [AI Generated]
What changed
The Government of India has introduced India Semiconductor Mission (ISM) 2.0 in the 2026–27 Budget, transitioning the domestic electronics ecosystem from policy planning to active implementation (India Semiconductor Mission). The initial phase has successfully secured 12 major semiconductor projects across six states, bringing in cumulative investments totaling approximately ₹1.64 lakh crore (Press Information Bureau).
Who this affects
This development impacts both domestic and international enterprises in the electronics manufacturing value chain:
Global semiconductor manufacturers: Companies looking to set up front-end fabrication or Assembly, Testing, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) units in India ([India Semiconductor Mission](https://ism.gov.in/)). Domestic electronic manufacturers: Indian companies transitioning into component manufacturing, packaging, and testing (India Semiconductor Mission). Technology professionals:* The expansion focuses heavily on large-scale talent cultivation and indigenous intellectual property (IP) development (Press Information Bureau).
Figure 2: India Semiconductor Mission 2.0 update and expansion funding, eligibility, and process milestone roadmap. [AI Generated]
The details
The implementation phase has marked several critical operational milestones as of June 2026:
Operational facilities: Micron Technology’s ATMP facility in Sanand, Gujarat, is now operational and has begun volume production of DRAM and NAND memory chips ([Press Information Bureau](https://pib.gov.in/)). Tata Electronics' assembly and test facility in Jagiroad, Assam, is also operational ([Press Information Bureau](https://pib.gov.in/)). Strategic partnerships: Tata Electronics has signed a strategic agreement with ASML to procure advanced manufacturing technology for its Dholera fabrication plant, which is India's first front-end semiconductor fabrication facility (Press Information Bureau). Expansion beyond core ISM:* New ATMP/OSAT facilities, such as the one in Bhiwadi, Rajasthan, are being inaugurated under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) (India Semiconductor Mission).
What to do about it
If you are a manufacturer, investor, or technology partner looking to participate in India's semiconductor ecosystem:
- Review the ISM 2.0 guidelines: Check the new focus areas including semiconductor equipment, materials manufacturing, and IP development (India Semiconductor Mission).
- Explore the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS): If your unit falls outside the core ISM framework, you may still be eligible for incentives under SPECS (India Semiconductor Mission).
- Submit proposals: Direct all investment proposals and incentive applications through the official India Semiconductor Mission portal (India Semiconductor Mission).
What is still unclear
While packaging and testing units are operational, the exact timeline for the first "Made-in-India" chips from front-end fabrication plants is projected for 2027–2028, but specific monthly targets remain under review (Press Information Bureau). Additionally, detailed operational guidelines for the new indigenous IP development incentives under ISM 2.0 have not yet been fully published.