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India's Semiconductor Ambitions Powered by ISM

Published: 4.17.2024

In a world driven by technology, semiconductors are the tiny, irreplaceable engines that power everything from smartphones to artificial intelligence. Recognizing this critical role, India has embarked on an ambitious mission to become a major player in the global semiconductor industry. The India Semiconductor Mission (ISM), launched in 2021 under the Ministry of Electronics and IT (MeitY), is at the forefront of this initiative. 

ISM goes beyond simply manufacturing chips with a dedicated budget of $9 Million to build a self-sustaining domestic ecosystem for semiconductors and displays, encompassing the entire value chain.  


The plan includes setting up facilities for semiconductor fabs, where silicon wafers are transformed into complex integrated circuits, and display fabs, crucial for manufacturing the panels in our TVs, laptops, and smartphones.  


Recognizing the potential of emerging technologies, the mission also incentivizes the development and production of next-generation chips like compound semiconductors and silicon photonics.  


The initiative extends beyond chip fabrication to encompass the Internet of Things (IoT) by including sensor production facilities. Recognizing that chip production is just one step, the mission also promotes Semiconductor Assembly, Testing, Marking, and Packaging (ATMP) facilities. This ensures a comprehensive ecosystem for developing and deploying these crucial technologies within India. 


The generous fiscal support offered through ISM, reaching up to 50% of project costs, makes setting up semiconductor facilities in India a financially attractive propositionreducing the risk for investors. 


Prime Minister Narendra Modi himself has been a strong advocate for the ISM, acknowledging that India's role into semiconductor manufacturing. His vision extends beyond domestic production and emphasizes the need to create a complete electronics manufacturing ecosystem within India, from raw material processing to chip design and fabrication.  


India's journey in the semiconductor industry has just begun. With a well-defined mission, government backing, and a focus on global collaboration, the future holds immense promise. The success of ISM has the potential to not only solidify India's position in the global electronics market but also empower the nation to play a leading role in shaping the future of technology.