ISM 2.0 will offer 30% capital subsidy, five-year PLI for chip ecosystem

The PLI will be set at 10% of the domestic bill of materials (BoM) value in the first year, staggered to 8%, 6%, 4% and 2% over the next four years, they said. Total government support will be capped at 50% of eligible capital expenditure. The proposed framework will cover research and development facilities, semiconductor-grade materials, test and characterisation facilities, and the manufacture and assembly of semiconductor equipment, the people said.