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Context:
At the 4th SEMICON India Conference (Sept 2025), PM Narendra Modi outlined India’s ambition to emerge as a “full-stack semiconductor nation”, covering the entire chip value chain from design and fabrication to packaging and innovation.
What are Semiconductors?
- Materials with conductivity between conductors (like copper) and insulators (like glass).
- Their electrical properties can be controlled by doping, temperature, and voltage.
- Key material: Silicon (others: gallium arsenide, germanium).
Applications of Semiconductors
- Electronics: Smartphones, laptops, televisions.
- Automotive: EVs, ADAS (driver-assistance systems), navigation, batteries.
- Telecom: 5G infrastructure, optical communication.
- Defense & Aerospace: Radars, satellites, navigation systems.
- Healthcare: Medical imaging, diagnostics, wearables.
- Artificial Intelligence (AI) & Cloud: High-performance computing, data centers.
India’s Current Status
- Strengths:
- Strong in chip design – major firms (Intel, Qualcomm, AMD, NVIDIA) have R&D centers in India.
- Skilled workforce in electronics & IT.
- Weaknesses:
- No large-scale commercial semiconductor fab (fabrication plant) yet.
- Heavy import dependence (India imports >90% of chips).
- Government Push:
- Semicon India Programme (2021): $10B incentive scheme for fabs, ATMP (assembly, testing, marking & packaging), and design.
- India Semiconductor Mission (ISM): Launched in December 2021 with an outlay of ₹76,000 crore. First semiconductor project cleared within 18 months of Cabinet approval.
- Micron Technology: Setting up a semiconductor assembly & test facility in Gujarat.
- Partnerships: Vedanta-Foxconn, ISMC, and others in talks.
- Target: India to become a global hub for semiconductor manufacturing & design by 2030.