India Semiconductor Mission (ISM) 2.0 to Retain Pari Passu Model with ₹76,000 Crore Outlay

Key facts

• The Government of India will retain the pari passu model for the upcoming phase of the India Semiconductor Mission (ISM) 2.0, where government incentives are released in proportion to a company’s own capital expenditure.
• The first phase of the mission, ISM 1.0, was launched in 2021 with an outlay of ₹76,000 crore, and cumulative investment commitments reached ₹1.64 lakh crore by May 5, 2026, surpassing the original target of ₹1.60 lakh crore.
• Under the ISM, the Centre provides 50 per cent fiscal support for project costs, which is disbursed step-by-step as firms invest their own funds rather than being front-loaded.
• The Union Cabinet has approved two additional projects by Crystal Matrix Limited and Suchi Semicon, bringing the total number of sanctioned projects under the mission to 12.
• The approved projects include the country’s first commercial mini/micro-LED display facility using gallium nitride (GaN) technology and a semiconductor packaging unit, both to be established in Gujarat.