India may allocate a larger capital incentive package for the second edition of the India Semiconductor Mission (ISM 2.0), exceeding the previous $10 billion outlay, according to Ashok Chandak, president of the India Electronics and Semiconductor Association.

India is giving its semiconductor mission a major upgrade, considering extending the second phase of the India Semiconductor Mission (ISM) to as long as 12 years.The goal? Build stronger local chip supply chains and help India stand out in the global tech race.

The Tamil Nadu Chief Minister’s Office (CMO) tweeted on microblogging platform X that the meeting took place on May 19, and included discussions with Japanese and Indian executives linked to the company’s planned semiconductor and precision components facility in Tiruvallur, which involves a proposed investment of ₹1,980 crore, according to news agency ANI.

Consumers are likely to witness high memory chip prices as no significant capacity addition is in the pipeline over the next 12-18 months, said Ashok Chandak, President, India Electronics and Semiconductor Association (IESA) on Wednesday.

The Centre is considering extending the second phase of the India Semiconductor Mission (ISM) to as long as 12 years, compared with the current five-year framework, senior government officials told Business Standard. The move is aimed at supporting companies involved in supplying raw materials and components to semiconductor fabrication and packaging units, which typically require longer gestation periods.