INDIA SEMICONDUCTOR MISSION (ISM)
- Semiconductors form the backbone of modern technology, driving critical sectors such as healthcare, transport, communication, defence, and space. With increasing digitalization and automation worldwide, they have become vital for both economic security and strategic autonomy.
- Since the launch of the India Semiconductor Mission (ISM) in 2021, India has rapidly advanced from vision to execution in its semiconductor roadmap.
- To accelerate this effort, the government rolled out a ₹76,000 crore Production Linked Incentive (PLI) scheme, of which nearly ₹65,000 crore has already been allocated.
- As part of these initiatives, Prime Minister Narendra Modi will inaugurate SEMICON India 2025 on September 2 in New Delhi. Marking its fourth edition, the event will be the country’s largest, bringing together 350+ companies from 33 nations and numerous global stakeholders.
- Jointly organized by ISM under the Ministry of Electronics and IT (MeitY) and SEMI, the global semiconductor association, this event underscores India’s ambition to emerge as a global hub.
- A significant milestone was also achieved on August 28, 2025, with the launch of one of India’s first Outsourced Semiconductor Assembly and Test (OSAT) Pilot Line Facilities in Sanand, Gujarat. From this facility, CG-Semi is expected to deliver the first “Made in India” chip.
- India’s push spans chip design, packaging, and fabrication, signaling its determination to achieve self-reliance. Under the Design Linked Incentive (DLI) scheme, 23 chip design projects have been sanctioned to support startups and innovators.
- Firms like Vervesemi Microelectronics are developing advanced chips for defence, aerospace, electric vehicles, and energy solutions, highlighting India’s shift from being merely a consumer to becoming a global semiconductor creator
- The Government of India has introduced the SEMICON India Programme with an outlay of ₹76,000 crore, carried out under the framework of the India Semiconductor Mission (ISM).
- SEMICON India serves as a platform that brings together global industry leaders, policymakers, academic institutions, and startups to encourage investment, facilitate dialogue, and build strategic partnerships.
- It plays a pivotal role in furthering ISM’s objectives by promoting international collaborations, driving research-to-market transitions, strengthening skill development, and highlighting India’s emerging position in the global semiconductor supply chain.
- So far, three editions of SEMICON India have been successfully organized — Bangalore (2022), Gandhinagar (2023), and Greater Noida (2024). The upcoming SEMICON India 2025 will underscore India’s evolving role in the semiconductor ecosystem worldwide.
- Over three days, the event will convene policymakers, innovators, industry leaders, academic researchers, and other stakeholders to foster collaboration and technological progress across the value chain.
- It is expected to attract strong participation from business executives, equipment manufacturers, design professionals, scientists, engineers, researchers, students, and technicians linked to the microelectronics sector
- Semiconductors are unique materials with the ability to function as both conductors and insulators, allowing them to regulate the flow of electricity—making them ideal for electronic circuits.
- When billions of these are embedded in a single chip, they enable devices to perform complex tasks such as making phone calls, capturing photos, or even guiding a spacecraft’s landing, as seen in Chandrayaan-3’s Vikram lander, which relied on Indian-built technology and AI.
- A semiconductor chip can be imagined as a miniature city, filled with billions of transistors—tiny switches—and countless intricate components working in harmony. From smartphones and electric vehicles to national defence systems, these chips act as the hidden engines of modern life.
- They form the backbone of contemporary technology, supporting healthcare, transportation, defence, and space exploration. With the world moving rapidly towards digitalisation and automation, semiconductors have become central to economic security and strategic autonomy.
- The global shortages witnessed during the Covid-19 pandemic and the Ukraine conflict highlighted their importance, as disruptions hit electronics manufacturing worldwide.
- Demand for smaller, faster, and more efficient chips is being driven by the growth of smart devices and artificial intelligence, which requires high-performance chips for real-time data processing.
- At present, semiconductor production is dominated by Taiwan, South Korea, Japan, China, and the US. Taiwan alone produces over 60% of the world’s chips and nearly 90% of the most advanced variants, exposing global supply chains to significant vulnerabilities.
- To counter this, countries—including India—are investing in domestic semiconductor manufacturing and working to diversify supply chains, aiming to build a more secure and resilient global ecosystem for the future
The global demand for semiconductors is rising rapidly, yet the supply chain remains highly vulnerable due to the industry being concentrated in just a few regions. This highlights the urgent need for diversified global manufacturing.
India is steadily emerging as a significant player in this space. Initiatives such as prioritizing Electronics Systems Design and Manufacturing (ESDM) under the Make in India programme, along with the India Semiconductor Mission and SEMICON India, have helped build a supportive ecosystem for the sector.
The global semiconductor market is projected to reach USD 1 trillion by 2030, with India poised to capture a notable share. The country has the potential to contribute significantly across the three main pillars of the semiconductor manufacturing supply chain:
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Equipment – Leveraging a robust MSME sector to manufacture components for semiconductor machinery.
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Materials – Utilizing India’s abundant chemicals, minerals, and specialty gases essential for semiconductor production.
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Services – Offering expertise in R&D, logistics, supply chain management, and a skilled workforce in AI, big data, cloud computing, and IoT
- Building on the rapid progress of its semiconductor journey, India is undergoing a transformative shift to emerge as a global leader in chip design, packaging, and manufacturing of Made in India chips.
- With the growing adoption of intelligent chips, the country is enhancing its packaging technologies to compete globally. In fabrication, India is transitioning from conventional silicon-based semiconductors to advanced Silicon Carbide (SiC) semiconductors, while in design, it plans to implement 3D glass packaging technology.
- Silicon Carbide offers greater stability and durability than traditional silicon, tolerating temperatures up to 2,400°C and high-voltage conditions, making it crucial for defence systems, missiles, radars, and space rockets.
- Thanks to coordinated industry efforts, India is set to roll out its first domestically made chip soon. These developments will establish India as a global hub for semiconductor design, fabrication, and manufacturing.
- The India Semiconductor Mission (ISM) supports investments in semiconductor fabrication, display manufacturing, and chip design, aiming to strengthen India’s position in the global electronics value chain.
- Guided by global experts, ISM seeks to build a robust semiconductor and display ecosystem and serves as the nodal agency for efficient implementation of related schemes.
- Currently, India has 10 approved semiconductor projects across six states, including its first commercial Silicon Carbide fabrication plant in Odisha and an advanced packaging unit introducing next-generation technologies.
- Together, these projects involve investments of ₹1.60 lakh crore, positioning India alongside global semiconductor leaders.
Key focus areas of the India Semiconductor Mission (ISM):
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Establishing chip manufacturing plants (fabs)
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Developing packaging and testing facilities
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Supporting chip design startups
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Training young engineers
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Encouraging global companies to invest in India
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Develop a long-term roadmap for building sustainable semiconductor and display manufacturing facilities, along with a robust semiconductor design ecosystem in India.
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Support the creation of a secure and trusted microelectronics supply chain, covering raw materials, specialty chemicals, gases, and manufacturing equipment.
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Drive exponential growth in India’s semiconductor design sector by offering essential support such as Electronic Design Automation (EDA) tools, foundry services, and other mechanisms for early-stage startups.
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Promote the generation of indigenous Intellectual Property (IP) within the semiconductor and display industry.
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Facilitate and incentivize Technology Transfer (ToT) from global and domestic sources.
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Create mechanisms to leverage economies of scale within India’s semiconductor and display industry.
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Encourage cutting-edge research in both evolutionary and revolutionary semiconductor and display technologies through grants, international collaborations, and dedicated initiatives in academia, research institutions, and industry, including the establishment of Centres of Excellence (CoEs).
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Foster collaborations and partnerships with national and international agencies, industries, and institutions to accelerate research, commercialization, and skill development
India’s ambitious semiconductor initiative, highlighted by SEMICON India 2025, marks a transformative phase in the country’s pursuit of technological self-reliance and innovation. Supported by government programs such as the Production Linked Incentive (PLI) scheme, significant financial investments, and strategic allocation of resources, India is building a comprehensive semiconductor ecosystem. This approach not only ensures prudent investment but also strengthens the foundation for a resilient semiconductor industry capable of powering sectors from electronics to automobiles.
Beyond just chips, SEMICON India 2025 symbolizes India’s drive toward self-sufficiency, innovation, and global leadership. By promoting “Designed and Made in India” technologies, the event underscores the country’s ambition to shape the future of the global semiconductor landscape and position itself as a key player in this critical strategic sector
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For Prelims: Semiconductor, Transistors, Fabrication Technology
For Mains:
1. Discuss the recent global chip shortage and its implications for India's semiconductor industry. What steps has India taken to enhance its domestic chip manufacturing capabilities? (250 Words)
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Previous Year Questions
1. Which of the following fabrication techniques is ideally suited for digital ICs?
(KVS TGT WET 2017)
A. Monolithic B. Thin film C. Hybrid D. Thin film and hybrid
Answer: A
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