Parliament Question: Objectives of ISM 2.0

GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY LOK SABHA STARRED QUESTION NO. *377 TO BE ANSWERED ON: 18.03.2026 OBJECTIVES OF ISM 2.0 * 377. DR. HEMANG JOSHI: SHRI JANARDAN MISHRA: Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state: (a) the primary objectives of the India Semiconductor Mission (ISM) 2.0 launched in Budget for the Financial Year 2026-27 and the manner in which it is different from the initial phase; (b) whether any semiconductor ecosystem proposals have been received from Karnataka including Dakshina Kannada district; (c) the details of allocation made under the Electronics Component Manufacturing Scheme (ECMS); (d) whether the allocation has resulted in an increase in domestic value addition in smartphone manufacturing and if so, the details thereof including the manufacturing units located in Karnataka; (e) the manner in which the Government is supporting the 24 semiconductor design startups currently under the Design Linked Incentive (DLI) scheme to reach global market; (f) whether the Government has identified new States including Karnataka particularly Dakshina Kannada district for setting up semiconductor clusters following the successful approvals in Odisha, Gujarat and Maharashtra and if so, the details thereof and if not, the reasons therefor; (g) whether there is DRAM shortage in manufacturing of mobile phones in the country; and (h) if so, the details thereof including the measures taken to reduce the price surge in mobile phones as a result of this shortage? ANSWER MINISTER FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI ASHWINI VAISHNAW) (a) to (h): A Statement is laid on the Table of the HouseSTATEMENT REFERRED TO IN THE REPLY TO LOK SABHA STARRED QUESTION NO. *377 FOR 18.03.2026, REGARDING OBJECTIVES OF ISM 2.0 ******* (a) to (h): India’s electronic manufacturing strategy is driven by the Hon’ble Prime Minister’s vision of AtmaNirbhar Bharat and Making India a global manufacturing hub. The Government adopted a structured and targeted policy for electronics manufacturing across the entire value chain including semiconductors. As a result of these policies, electronics manufacturing in India has expanded significantly in the last 11 years. It can be seen from the following statistics: # 2014-15 2024-25 Remarks Production of electronics ~1.9 Lakh Cr ~12 Lakh Cr Increased 6 goods (Rs.) times Export of electronics goods 38 thousand Cr ~3.3 Lakh Cr Increased 8 (Rs.) times Production of mobile phones 18 thousand Cr 5.45 Lakh Cr Increased 28 (Rs.) times Export of mobile phones 1,500 Cr. 2 Lakh Cr Increased 127 (Rs.) times Mobile Phone imported 75% of the total 0.02% of the total (units) demand demand Semicon India Programme Semiconductors is a foundational and strategic industry. Semiconductor chips are used in almost every device. To promote the development of its manufacturing ecosystem in India, the Government launched Semicon India Programme in January 2022. In a short span of four years, the Government has approved 10 projects with investment commitments of about ₹1.6 lakh crore. Commercial production from one of the plants (Micron) has commenced along with pilot production underway in 3 more plants. Design Linked Incentive Scheme 24 projects have been approved for the design of semiconductor chips & SoCs, with a total project value of Rs. 900 crore. These projects cover chips relating to various critical sectorssuch as video surveillance, drone detection, energy metering, microprocessors, satellite communications, broadband and IoT SoCs. Government is providing support to these companies in the form of: 1. “Product Design Linked Incentive” of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application 2. “Deployment Linked Incentive” of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application. This includes 11 projects in the state of Karnataka. The list of these projects is at Annex-I. Chip to Startup (C2S) Programme In addition, the Government is also providing infrastructure support for chip design to eligible applicants, including access to EDA tools, IP cores, and fabrication facilities. These advanced designing tools are now available to students of 315 universities/institutes. So far, their usage has exceeded 185 lakh hours. This includes 34 universities/institutions/startups in the State of Karnataka (list at Annex-II). Using the EDA tools and IPs, 146 chips designs have been taped out by 49 institutions across India out of which SCL, Mohali has successfully fabricated and packaged 94 student-designed chips. India Semiconductor Mission 2.0 Building on the success of Semicon India Programme, India Semiconductor Mission 2.0 was announced in the Union Budget 2026-27, to produce equipment and materials, design full stack, Indian IP and fortify supply chains. Electronics Components Manufacturing Scheme (ECMS) Government launched ECMS to further deepen the supply chain ecosystem and develop robust electronics component ecosystem in the country. It aims to attract investments across key components such as Printed Circuit Boards (PCBs), passive components, electro-mechanical components, sub-assemblies, camera modules, optical transceivers, and capital goods required for electronics manufacturing. The goal is increase domestic value addition (DVA) in electronics product and ultimately increase India’s exports share in global electronic trade by integrating with the Global Value Chains (GVCs). The scheme has received overwhelming response from industry so far. Against the investment target of Rs 59,350 crores, investment commitments of Rs 1.15 lakh crores have been received. Taking cognizance of the strong industry response, in Budget 2026, the Government enhanced the budgetary outlay of the scheme from Rs 22,919 crores to Rs 40,000 crores. Till date, 46 applications have been approved across 11 states under the ECMS scheme. Out of these approved applications, 9 applicants have proposed their manufacturing facility in Karnataka. The list of approved projects in the state of Karnataka with their locations is Annex-III.The production of these components would not only cater to the domestic demand, thereby reducing import dependency but also enhance export capability for many of these components. Because of this conducive policy environment comprising of schemes such as PLI schemes for mobile manufacturing and ECMS, the production and export of smartphones in Bharat has witnessed a significant growth. Smartphones emerged as the top most category in the exported goods in Calendar Year 2025. Export value (in # HS Code Item USD) 1 85171300 Smartphones 30.13 Billion Automotive diesel fuel, not containing biodiesel, 2 27101944 16.34 Billion conforming to standard is 1460 Diamond (other than industrial diamond) cut or otherwise 3 71023910 1 2.47 Billion worked but not mounted or set (Source: Directorate General of Commercial Intelligence and Statistics) Industry assessments indicate that the rapid expansion of AI applications has led to a sharp increase in demand for high-performance memory used in AI servers and data centres. As a result, a larger share of global memory output is being directed towards AI infrastructure. This may have temporarily tightened the availability for other digital applications, including smartphones. Smartphone manufacturers are responding to the scenario through portfolio rationalisation, optimisation of hardware specifications and adjustments in product mix. *******Annex-I List of Projects approved under DLI in the State of Karnataka S. Company Name Project Name No. 1 Fermionic Design Pvt. A 4-channel Mux-Demux Gain Phase Shifter for Ltd. Hybrid Beamformer in 8-12GHz for satellite communication and 5G Antenna Array systems 2 Morphing Machines Pvt. SoC, IP and Accelerator card powered by REDEFINE Ltd. architecture and Ecosystem 3 Calligo Technologies Pvt. SoC with RISC V and POSIT Coprocessor based Ltd. Accelerator Card with Software Ecosystem 4 Sensesemi Technologies SenseSoC-200 SoC for IOT and Medical Pvt. Ltd. Applications 5 Saankhya Labs Pvt. Ltd. SoC for Baseband Processing for 5G Telecom infrastructure 6 Aryabhata Circuits and Next Generation IC for Advanced Tire Monitoring Research Labs Pvt. Ltd. System (TMS) 7 BigEndian SoC for Video Audio Surveillance Unit, Design and Semiconductors Pvt. Ltd. Development 8 C2i Semiconductors Pvt. A Digital Multiphase Controller IC for Enterprise Ltd. Server Power 9 MMRFIC Technology Indigenous Ka-Band Beamformer RADAR Chip Pvt. Ltd. 10 Sophrosyne Technologies High-precision, Ultra-low-power SoC for real-time Pvt. Ltd. monitoring of cardiac activity and other vital health parameters 11 Aagyavision Pvt. Ltd. Radar RF chips for edge applicationsAnnex-II List of Universities / Institutions / Startups approved under C2S Programme for access to Design Infrastructure S. No. Institute 1 Indian Institute of Science Bangalore 2 Cambridge Institute of Technology, Bengaluru 3 BMS College of Engineering, Bengaluru 4 REVA University, Bengaluru 5 PES University, Bengaluru 6 Acropotis Technology & Research 7 KLE Technological University, Hubballi 8 International Institute of Information Technology Bangalore 9 Indian Institute of Technology Dharwad 10 M/s Morphing Machines Pvt. Ltd 11 M/s TSilicon Design Pvt. Ltd 12 M/s Chipspirit Technologies Pvt. Ltd 13 M/s Sandlogic Technologies Pvt. Ltd 14 M/s IntSemi Technologies Pvt. Ltd 15 M/s Semi-Ksha Semiconductor India Pvt. Ltd. 16 Amrita School of Engineering Bengaluru 17 NIT Surathkal 18 New Horizon College of Engineering, Bengaluru 19 IIIT, Dharwad 20 Sri Krishna Institute of Technology, Bangalore 21 Acharya Institute of Technology, Bangalore 22 Dayananda Sagar Academy of Technology & Management, Bangalore 23 S J C Institute of Technology, Chickballapur 24 Dayananda Sagar College of Engineering (DSCE), Bangalore School of Engineering and Technology, Christ University, Kengeri 25 Campus, Bangalore 26 Alliance University, Bangalore 27 RV College of Engineering, Bengaluru 28 Siddaganga Institute of Technology, Tumakuru 29 Akshaya Institute of Technology, Tumkur 30 Ramaiah University of Applied Sciences, Bangalore 31 Shri Madhwa Vadiraja Institute of Technology and Management, Udupi 32 MVJ College of Engineering, Bangalore 33 B M S Institute of Technology and Management, Bengaluru 34 Moodlakatte Institute of Technology, Kundapura (MITK)Annex-III List of approved projects in the state of Karnataka under ECMS S. Company Product Segment Location No. 1. Aequs Consumer Enclosures for Dharwad, Products Private Mobile, IT Karnataka Limited Hardware products and related devices 2. Amphenol High Connectors Bengaluru, Speed Technology Karnataka India Private Limited 3. AT & S India HDI PCB Mysore, Private Limited Karnataka 4. AT & S India Multi-layer PCB Mysore, Private Limited Karnataka 5. BPL Limited Multi-layer PCB Bengaluru, Karnataka 6. Ehoome IOT Multi-layer PCB Mysore, Private Limited Karnataka 7. Micropack Private Multi-layer PCB Bengaluru, Limited Karnataka 8. Rakon India Private Oscillators Bengaluru, Limited Karnataka 9. Wipro Global Laminate Bengaluru, Engineering and Karnataka Electronic Materials Private Limited ******