Context:
The Union Cabinet has approved additional semiconductor projects under the India Semiconductor Mission (ISM), taking the total number of approved semiconductor and chip-related facilities to 12. The initiative aims to reduce import dependence, strengthen supply-chain resilience, and position India as a major player in the global semiconductor ecosystem.
- Semi-conductor chips or integrated circuits are essential for smartphones, computers, automobiles, defence systems, AI, telecommunications, and industrial equipment.
- The global semiconductor supply chain is highly concentrated in countries such as Taiwan, South Korea, the United States, Japan, and China.
- India launched the India Semiconductor Mission (ISM) in 2021 with a financial outlay of ₹76,000 crore to promote semiconductor manufacturing and design.
- Semiconductor fabrication plants (fabs) manufacture chips using advanced lithography and wafer-processing technologies in highly controlled clean-room environments.
- The semiconductor ecosystem also includes ATMP/OSAT facilities for Assembly, Testing, Marking, Packaging, and outsourced semiconductor assembly.
- India seeks to develop a full semiconductor value chain including chip design, fabrication, packaging, materials, and research capabilities.
- Semiconductor self-reliance is linked to economic security, digital sovereignty, electronics manufacturing, and strategic sectors such as defence and space.
- Supply-chain disruptions during the COVID-19 pandemic and geopolitical tensions highlighted the importance of domestic chip production.
- India’s semiconductor strategy complements initiatives such as Make in India, Production Linked Incentive (PLI) schemes, and electronics manufacturing expansion
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