Industrial Policy & Trade Monitor· 2663 actions· ✨ 89 recent

On 1 February 2026 Finance Minister Nirmala Sitharaman, presenting the Union Budget 2026-27, announced the launch of India Semiconductor Mission (ISM) 2.0 — the second-phase national semiconductor industrial-policy framework succeeding ISM 1.0 (2021, INR 76,000 crore). The Budget makes an initial INR 1,000 crore provision for ISM 2.0 in FY 2026-27 and raises the Electronics Components Manufacturing Scheme (ECMS) outlay from INR 22,919 crore to INR 40,000 crore. ISM 2.0's distinct architecture centres on four strategic priorities not in ISM 1.0: (i) indigenous semiconductor equipment, chemicals, gases and materials production, (ii) full-stack Indian semiconductor IP design, (iii) industry-led R&D and skills/training centres, and (iv) domestic and global supply-chain integration. Total mission outlay reported as approximately INR 1-1.2 lakh crore (~USD 12-14bn) is being finalised; Cabinet clearance and the formal scheme launch are expected by mid-2026.

On 24 December 2025 the Minister of Science and Technology signed Decision No. 4386/QĐ-BKHCN defining the functions, tasks, and organisational structure of the Vietnam National Multi-Project Wafer Coordination Centre (VNMPW/CC). The Centre sits under MOST's Authority of Information Technology Industry and acts as a coordinating hub between domestic chip-design firms, research institutes, and domestic / foreign fabrication and packaging partners. It provides shared EDA software access, IP libraries, technical design verification, performance measurement, training programmes, and pilot-production (MPW shuttle) support — the first concrete institutional node operationalising Vietnam's 2024 semiconductor strategy (Decision 1018/QĐ-TTg).

On 10 October 2024 the Czech government approved the National Semiconductor Strategy, prepared by the Ministry of Industry and Trade (MPO). The strategy sets five objectives to be reached by end-2029: a 300% increase in semiconductor sector sales versus 2022, a 300% increase in semiconductor component production versus 2022, a 200% increase in exports of semiconductor technologies, growth of the specialist workforce to 9,000 experts, and the build-out of a national competence centre. The strategy is positioned as the Czech implementation track for the EU Chips Act and identifies power electronics, integrated-circuit design and semiconductor manufacturing equipment as the country's competitive niches.

Law 14.968/2024 establishes the Brasil Semicon program, extending and expanding semiconductor industry incentives through 2073 (aligned with Manaus Free Trade Zone benefits). Provides R$7 billion annually in tax incentives for semiconductor and ICT sectors, with R$21 billion committed through 2026. Expands PADIS eligibility to include chip design services and software, and calculates R&D credits on total revenue rather than domestic sales alone, encouraging exports.

Uttar Pradesh notified its first dedicated state-level Semiconductor Policy on 12 February 2024 (cabinet-cleared 30 January 2024), making it the fourth Indian state with a sectoral semiconductor incentive regime after Tamil Nadu, Karnataka and Gujarat. The policy stacks a 50% additional state capital subsidy on top of the central India Semiconductor Mission (ISM) 50% subsidy — yielding an effective ~75% capex coverage for qualifying fab, display-fab, compound-semiconductor, ATMP/OSAT, and sensor units approved by ISM. It adds a 75% land rebate on the first 200 acres for ATMP/OSAT (30% on additional land), a 5% interest subsidy (capped at ₹1 cr/year for 7 years) on investments up to ₹200 cr, 100% stamp-duty and registration-fee exemption, and a 10-year electricity-duty exemption. Within months of notification the state attracted ₹40,038 cr in investment proposals (Tarq Semiconductor, Kaynes Semicon, Aditech, Vamasundari) with ~32,000 projected jobs, prompting the cabinet to later approve mega-project incentives for investments ≥ ₹3,000 cr.

The Government of Tamil Nadu released the Tamil Nadu Semiconductor and Advanced Electronics Policy 2024 at the Tamil Nadu Global Investors Meet on 7 January 2024. The policy provides a state top-up equal to 50% of the central India Semiconductor Mission (ISM) incentive for any unit approved under the central semiconductor-fab / display-fab / compound-semiconductor / ATMP / sensor / silicon photonics / discrete semiconductor schemes, plus standalone state incentives (capital subsidy, training subsidy, product testing & prototyping support, land cost concessions, stamp duty refund, electricity tax exemption, quality certification, IP, and interest subsidy). Minimum investment threshold is ₹200 crore with a minimum of 150 jobs for the initial ₹200 crore tranche; the policy is valid for three years from the date of notification and is implemented by Guidance Tamil Nadu, the state's investment-promotion agency.