India Semiconductor Mission: From Fab Announcements to the First 'Made in India' Chip
The Mission
Launched in December 2021 with an outlay of ₹76,000 crore, the India Semiconductor Mission (ISM) under MeitY offers fiscal support of up to 50 per cent of project cost for fabs, display fabs, and compound semiconductor/ATMP (assembly, test, marking and packaging) units, with States adding 20-25 per cent.
- Tata Electronics–PSMC fab at Dholera, Gujarat: India's first commercial fab, 28-110 nm nodes, about 50,000 wafer starts per month.
- Micron ATMP at Sanand; Tata OSAT at Jagiroad, Assam; CG Power–Renesas and Kaynes in Sanand; HCL–Foxconn near Jewar.
- Design-Linked Incentive scheme supports fabless start-ups; Chips-to-Startup programme aims to train 85,000 engineers.
Why Semiconductors Matter
- Strategic autonomy: chips are the 'new oil'; the 2021-22 shortage stalled auto and electronics output worldwide.
- Trade: India imports semiconductors worth over USD 20 billion annually; domestic demand is projected to exceed USD 100 billion by 2030.
- Geopolitics: the US CHIPS Act, EU Chips Act and Japan's Rapidus signal a global race; India is part of the Quad semiconductor supply-chain initiative.
Assessment
India has wisely targeted mature nodes and packaging where demand is broad and technology accessible, rather than chasing leading-edge fabs. The challenges ahead are ultra-pure water and power, a specialised workforce, and an ecosystem of chemical and gas suppliers. Sustained policy continuity through ISM 2.0 will determine whether India moves from assembling chips to designing and fabricating them at scale.
Test Yourself
2 graded questions · Prelims format
Consider the following statements about semiconductor manufacturing in India:
- 1.The India Semiconductor Mission functions under the Ministry of Electronics and Information Technology.
- 2.India's first commercial semiconductor fabrication plant is being set up at Dholera in Gujarat.
- 3.The Semi-Conductor Laboratory at Mohali is administered by the Ministry of Defence.
Frequently Asked Questions
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