Lok Sabha Question No. 377 (STARRED), answered on 2026-03-18
Subject: Objectives of ISM 2.0
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Dr. Hemang Joshi, Shri Janardan Mishra

## 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 House

## STATEMENT  REFERRED  TO  IN  THE  REPLY  TO  LOK  SABHA  STARRED QUESTION NO. *377 FOR 18.03.2026, REGARDING OBJECTIVES OF ISM 2.0

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(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 goods (Rs.) | ~1.9 Lakh Cr            | ~12 Lakh Cr               | Increased 6 times   |
| Export of electronics goods (Rs.)     | 38 thousand Cr          | ~3.3 Lakh Cr              | Increased 8 times   |
| Production of mobile phones (Rs.)     | 18 thousand Cr          | 5.45 Lakh Cr              | Increased 28 times  |
| Export of mobile phones (Rs.)         | 1,500 Cr.               | 2 Lakh Cr                 | Increased 127 times |
| Mobile Phone imported (units)         | 75% of the total demand | 0.02% of the total 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 sectors such  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.

|   # |   HS Code | Item                                                                                   | Export value (in USD)   |
|-----|-----------|----------------------------------------------------------------------------------------|-------------------------|
|   1 |  85171300 | Smartphones                                                                            | 30.13 Billion           |
|   2 |  27101944 | Automotive diesel fuel, not containing biodiesel, conforming to standard is 1460       | 16.34 Billion           |
|   3 |  71023910 | Diamond (other than industrial diamond) cut or otherwise worked but not mounted or set | 12.47 Billion           |

(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.

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## List of Projects approved under DLI in the State of Karnataka

|   S. No. | Company Name                                   | Project Name                                                                                                                       |
|----------|------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Fermionic Design Pvt. Ltd.                     | A 4-channel Mux-Demux Gain Phase Shifter for Hybrid Beamformer in 8-12GHz for satellite communication and 5G Antenna Array systems |
|        2 | Morphing Machines Pvt. Ltd.                    | SoC, IP and Accelerator card powered by REDEFINE architecture and Ecosystem                                                        |
|        3 | Calligo Technologies Pvt. Ltd.                 | SoC with RISC V and POSIT Coprocessor based Accelerator Card with Software Ecosystem                                               |
|        4 | Sensesemi Technologies Pvt. Ltd.               | SenseSoC-200 SoC for IOT and Medical Applications                                                                                  |
|        5 | Saankhya Labs Pvt. Ltd.                        | SoC for Baseband Processing for 5G Telecom infrastructure                                                                          |
|        6 | Aryabhata Circuits and Research Labs Pvt. Ltd. | Next Generation IC for Advanced Tire Monitoring System (TMS)                                                                       |
|        7 | BigEndian Semiconductors Pvt. Ltd.             | SoC for Video Audio Surveillance Unit, Design and Development                                                                      |
|        8 | C2i Semiconductors Pvt. Ltd.                   | A Digital Multiphase Controller IC for Enterprise Server Power                                                                     |
|        9 | MMRFIC Technology Pvt. Ltd.                    | Indigenous Ka-Band Beamformer RADAR Chip                                                                                           |
|       10 | Sophrosyne Technologies Pvt. Ltd.              | High-precision, Ultra-low-power SoC for real-time monitoring of cardiac activity and other vital health parameters                 |
|       11 | Aagyavision Pvt. Ltd.                          | Radar RF chips for edge applications                                                                                               |

## Annex-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 MSInstitute 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. No. | Company                                                           | Product Segment                                                 | Location             |
|----------|-------------------------------------------------------------------|-----------------------------------------------------------------|----------------------|
|        1 | Aequs Consumer Products Private Limited                           | Enclosures for Mobile, IT Hardware products and related devices | Dharwad, Karnataka   |
|        2 | Amphenol High Speed Technology India Private Limited              | Connectors                                                      | Bengaluru, Karnataka |
|        3 | AT &SIndia Private Limited                                        | HDI PCB                                                         | Mysore, Karnataka    |
|        4 | AT &SIndia Private Limited                                        | Multi-layer PCB                                                 | Mysore, Karnataka    |
|        5 | BPL Limited                                                       | Multi-layer PCB                                                 | Bengaluru, Karnataka |
|        6 | Ehoome IOT Private Limited                                        | Multi-layer PCB                                                 | Mysore, Karnataka    |
|        7 | Micropack Private Limited                                         | Multi-layer PCB                                                 | Bengaluru, Karnataka |
|        8 | Rakon India Private Limited                                       | Oscillators                                                     | Bengaluru, Karnataka |
|        9 | Wipro Global Engineering and Electronic Materials Private Limited | Laminate                                                        | Bengaluru, Karnataka |

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