Semicon 2.0: Centre to co-invest with VCs in chip startups, equity model replaces grants

The government is set to become a venture-style investor in semiconductor startups under India Semiconductor Mission (ISM) 2.0, matching investments made by private venture capital (VC) firms in a bid to bridge one of the biggest funding gaps in the country’s chip design ecosystem.

The framework, which marks a significant departure from the grant-based approach adopted under the first phase of the semiconductor mission, is expected to be notified in the next few weeks.