The IP Sovereignty of India’s Full-Stack Semiconductor Future under ISM 2.0

1. Executive Summary

India has reached a critical inflection point in its semiconductor journey. While the first phase of the India Semiconductor Mission (ISM 1.0) successfully established the physical foundation through ATMP and Fabrication facilities, ISM 2.0 marks a decisive pivot toward high-value Full-Stack IP sovereignty.

• The Strategic Shift: India is moving from "Capacity Creation" to "Ecosystem Consolidation," supported by a dedicated ₹1,000 crore provision in the FY 2026-27 budget for equipment, materials, and indigenous IP cores.
• The IP Imperative: Capturing the Design Layer is essential for long-term profitability. Global margins in chip design are significantly higher than in contract manufacturing; ISM 2.0 aims to scale the domestic fabless ecosystem from 24 to over 50 global-grade firms.
• Actionable Mandate: Enterprises must realign R&D with the DIR-V (RISC-V) open-source architecture while ensuring global interoperability with RISC-V International standards to prevent ecosystem fragmentation.

2. Context & Narrative: The "Technol…