GS3 🔬 Science & Technology

India Semiconductor Mission (ISM)

/ˈɪndiə ˌsɛmikənˈdʌktər ˈmɪʃən/

India's national programme notified on 21 December 2021 with an outlay of Rs 76,000 crore to develop a comprehensive semiconductor and display manufacturing ecosystem -- covering chip fabrication, OSAT (assembly and testing), chip design, compound semiconductors, and sensor fabrication -- with fiscal support of up to 50% of eligible capital expenditure for approved projects.

Context & Background

As of May 2026, 12 projects worth Rs 1.64 lakh crore have been approved (12th project: Suchi Semicon OSAT Surat and Crystal Matrix GaN fab Dholera, Cabinet approval May 2026), including India's first semiconductor fab (Tata-PSMC in Dholera, Gujarat — Tata-ASML MOU 16 May 2026) and OSAT facilities by Micron (commercial production 26 February 2026), CG Power in Sanand, and TSAT in Morigaon, Assam (Phase 1 April 2026); ISM 2.0 was announced in Budget 2026-27 focusing on equipment, materials, and full-stack Indian semiconductor IP.

UPSC Exam Relevance

GS3 (Science & Technology, Economy). Prelims: outlay (Rs 76,000 crore), key projects (Tata-PSMC, Micron, CG Power), locations (Dholera, Sanand). Mains: semiconductor self-reliance, geopolitics of chip supply chains, comparison with US CHIPS Act and EU Chips Act.