Model answer & approach
- India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India ? Mention the salient features of the India Semiconductor Mission. (Answer in 250 words)
Introduction
India aspires to become a global semiconductor manufacturing hub to ensure technological self-reliance and strengthen supply chain resilience. The government’s India Semiconductor Mission (ISM) under the Digital India vision seeks to transform India into a key player in chip design, fabrication, and packaging.
Body
1. Challenges Facing the Semiconductor Industry:
- High Capital Investment: Setting up a fabrication unit requires USD 5–10 billion, posing financial barriers.
- Lack of Ecosystem: Absence of local suppliers for materials, gases, and precision machinery.
- Technological Complexity: Limited expertise in advanced lithography and chip design.
- Infrastructure Gaps: Inadequate clean water, uninterrupted power, and logistics for high-precision manufacturing.
- Global Competition: Established players like Taiwan, South Korea, and the USA dominate production and R&D.
2. India Semiconductor Mission (ISM):
- Implemented under the Ministry of Electronics and IT (MeitY) in 2021.
- Provides financial incentives (up to 50% capital support) for semiconductor fabs, display units, and design-linked incentives.
- Focus on developing compound semiconductors, ATMP/OSAT facilities, and chip design ecosystem.
- Aims to build skilled manpower and attract global partnerships (e.g., with Micron, AMD, and ISMC).
- Promotes research–industry collaboration via the Semicon India Programme.
Conclusion
India’s semiconductor ambition depends on strategic investment, ecosystem development, and global collaboration. If executed effectively, the ISM can make India a key node in global semiconductor supply chains and drive next-generation technological independence.
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