PM Modi Announces Next Phase of India Semiconductor Mission and DLI Scheme.

The Indian government is working on the next phase of the India Semiconductor Mission and Design-Linked Incentive Scheme. Prime Minister Narendra Modi stated that the country is committed to meeting the growing demand for rare earth minerals and is working on the Critical Minerals Mission. Modi also mentioned that the government is preparing to launch the new DLI scheme.

The Indian government is actively working on the next phase of the India Semiconductor Mission (ISM) and the Design-Linked Incentive (DLI) Scheme. Prime Minister Narendra Modi recently emphasized the country's commitment to meeting the growing demand for rare earth minerals and the importance of the Critical Minerals Mission [3]. Additionally, Modi mentioned that the government is preparing to launch the new DLI scheme.

The upcoming $15 billion second phase of the ISM is expected to introduce special incentives for micro, small, and medium enterprises (MSMEs) to become suppliers of critical raw materials for global chipmakers. The government aims to build a complete ecosystem for semiconductors by supporting these MSMEs [1].

The second edition of the Semicon India event, scheduled to take place in New Delhi, will be inaugurated by Prime Minister Modi on September 2, 2025. The event will feature high-profile industry leaders from companies such as ASML, Foxconn, and Kinsus. The government aims to highlight the country’s progress in building a comprehensive semiconductor ecosystem [2].

The government is also considering changes to the existing DLI scheme and is consulting experts to recast the program. The new DLI scheme aims to be more liberal in its approach to companies selected under the scheme, the way funds are released, and the amount of money provided as grants. The goal is to ensure access to scale and enhance India's capabilities in semiconductor design [2].

The government's focus on supporting MSMEs and recasting the DLI scheme reflects its commitment to strengthening India's semiconductor industry and meeting global demand for critical raw materials.

References:
[1] https://www.business-standard.com/industry/news/govt-may-bet-on-msmes-to-power-silicon-dreams-with-fresh-incentives-125083100468_1.html
[2] https://www.business-standard.com/technology/tech-news/pm-modi-to-inaugurate-second-semicon-india-event-on-september-2-125090101406_1.html
[3] https://suryasamachar.com/2025/09/02/india-semiconductor-mission-is-continuing-work-on-the-next-phase-pm-modi/