Centre likely to extend India Semiconductor Mission 2.0 tenure to 12 years

The government is considering extending the tenure of the second phase of the India Semiconductor Mission (ISM) to as much as 12 years from the current five years, senior government officials said.

The extended timeline for incentives would align with the longer gestation periods and handholding required for companies supplying raw materials to chip manufacturing and packaging units, officials told Business Standard.

“Our aim is to develop as many domestic MSMEs (micro, small and medium enterprises) as possible into suppliers for the world’s largest semiconductor companies. To help them compete on quality and scale, these firms need guidance and support over a longer period,” an official said.