Anindita Nayak
Bhubaneswar, May 20
India launched the India Semiconductor Mission (ISM) in 2022, to strengthen its semiconductor industry. Semiconductors or chips, are vital for all electronics devices like smartphones and cars. With rising demand for embedded products, chips have emerged as the most critical elements for multiple sectors.
However, the COVID pandemic exposed the vulnerability of the global semiconductor supply chain, prompting countries to rethink their semiconductor strategies. In December 2022, India launched the ISM to strengthen its semiconductor industry. Managed by the Digital India Corporation, it aims to boost semiconductor manufacturing, packaging, and design within the country.
A Rs 76,000-crore incentive package has been announced to attract investment in semiconductor and display fabrication plants. This has led to significant developments, including the approval of three major facilities, marking a significant step forward for India in the semiconductor sector.
Three major semiconductor facilities are set to be established in India. In Gujarat’s Dholera Special Investment Region, Tata Electronics Private Limited (TEPL) will build a semiconductor fabrication facility with an investment exceeding Rs 91,000 crore, marking India’s first commercial semiconductor plant. In Morigaon, Assam, TEPL will also establish an OSAT facility for semiconductor assembly and testing with an investment of around Rs 27,000 crore. Additionally, another OSAT facility will be built in Sanand, Gujarat, by CG Power and Industrial Solutions Limited with an investment of about Rs 7,500 crore. These facilities are expected to strengthen India’s semiconductor industry, create jobs, and boost growth in sectors like electronics and telecommunications.
Deloitte predicts India’s semiconductor industry will grow to $85 billion by 2030, creating 600,000 jobs. Few countries produce semiconductors, so stable supply chains are vital post-pandemic. India joining semiconductor manufacturing puts it among select nations capable of making these essential parts. The Prime Minister’s focus on ‘Make in India’ chips aims for self-reliance and modernization. Production Linked Incentive schemes and electronic clusters will support this effort, making India a semiconductor hub.
India is expanding its chip manufacturing efforts to include fabrication alongside its chip design capabilities. Chips are crucial in industries such as defense, aerospace, and communication. With government support, India seeks to reduce dependence on imports. This move positions India as a key player in the global semiconductor market and opens doors in related industries. Strengthening its semiconductor ecosystem will enhance India’s global tech standing, creating jobs and driving economic growth.
