India Semiconductor Mission (ISM)

Recently, the government approved the proposal of Kaynes Semicon Pvt Ltd to set up a semiconductor unit in Sanand, Gujarat.

Crucial Insights on the Government Approval on Semiconductor Plants

The Indian government has approved four semiconductor plants under the India Semiconductor Mission.

• Background: The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified in December, 2021 with a total outlay of Rs. 76,000 crore.
  • In June, 2023, the government had approved the first proposal for setting up a semiconductor unit in Sanand, Gujarat.
  • In February, 2024, three more semiconductor units were approved in Dholera, Gujarat, Morigaon, Assam and Sanand, Gujarat.
• Progress: Construction of all 4 semiconductor units is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the units. 
  • These units will bring an investment of almost Rs 1.5 Lakh crore and the cumulative capacity is about 7 crore chips per day.
• Focus on: With the first chips expected next year, the initiative aims to boost various industries. 
  • The government is also focusing on talent development and partnerships with international entities, preparing India to become a global semiconductor hub.
• Investment & Capacity: The proposed unit will be set up with an investment of Rs 3,300 crore. The capacity of this unit will be 60 Lakh chips per day.
• Significance: The chips produced in this unit will cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

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About India Semiconductor Mission (ISM)

ISM was launched in 2021 under the aegis of the Ministry of Electronics and IT (MeitY) for the development of a sustainable semiconductor and display ecosystem in the country.

• Components: Scheme for setting up of Semiconductor Fabs in India: 
  • Scheme for setting up of Display Fabs in India
  • Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India
  • Design Linked Incentive (DLI) Scheme: It offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design.
• A Nodal Agency: ISM has been working as nodal agency for the Schemes approved under Semicon India Programme. 
  • The applications were received by ISM and are being appraised by ISM. 
    • ISM has also been engaging with various stakeholders of the Semiconductors and Display ecosystem to attract investments in India. 

About Semiconductors

Semiconductors, often called ‘chips,’ are tiny electronic circuits containing transistors, diodes, capacitors, resistors, and interconnections. These circuits are intricately arranged on a silicon wafer. 

• Use: Semiconductors are employed in the manufacture of various kinds of electronic devices, including diodes, transistors, and integrated circuits. 
  • Such devices have found wide application because of their compactness, reliability, power efficiency, and low cost.
• Availability: Currently, about 70% of the world’s semiconductor manufacturing is concentrated in South Korea, Taiwan, China, the United States and Japan.

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