Why India Is Betting On Chip Design Startups With ₹1.25 Lakh Cr ISM 2.0

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More than four years after the launch of the Semicon India Programme, the Indian government is looking at a new course for the India Semiconductor Mission (ISM).

After the Cabinet approval for a ₹1.25 Lakh Cr budget for the programme, Semicon 2.0 is now ready for rollout, but there’s a major difference this time around. 

While the first leg of the programme focused on semiconductor manufacturing as a whole, the focus has shifted towards electronics systems design as a segment where Indian startups can find their niche. And this time around, the government is showing its conviction with a grant-plus-equity model. –

The first phase of the mission focused largely on grant-based funding to startups, subsidised Electronic Design Automation (EDA) tools and design infrastructure, but now the focus is on chip design rather than full scale manufacturing of semiconductors. 

Although the government has approved the broad contours of ISM 2.0, detailed operational guidelines are yet to be released, which means startups currently have several questions around eligibility, investment terms........

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