Science & Technology
New Developments in India's Semiconductor Mission
As assembly and testing units move towards commercial production, the next test for the India Semiconductor Mission is design capability and a skilled workforce.
2 min readPrelimsGS Paper III
Why is this in the news?
Progress on approved fabrication and ATMP/OSAT projects has renewed attention on the India Semiconductor Mission (ISM) and the incentives under the Semicon India programme.
About the mission
- Launched in December 2021 with an outlay of ₹76,000 crore for the Semicon India programme.
- Functions as a specialised division within the Digital India Corporation under the Ministry of Electronics and IT.
- Supports fabs, display fabs, compound semiconductors, ATMP/OSAT units and chip design.
Key schemes
| Scheme | Focus |
|---|---|
| Semiconductor fabs | Fiscal support for setting up silicon fabrication units |
| Display fabs | Support for TFT-LCD and AMOLED display manufacturing |
| Compound semiconductors & ATMP/OSAT | Assembly, testing, marking and packaging units |
| Design Linked Incentive (DLI) | Support for domestic chip and IP design companies |
Challenges
- Very high capital cost and long gestation periods.
- Reliable supply of ultra-pure water and uninterrupted power.
- Shortage of experienced process engineers.
- Global competition and export controls on advanced tools.
Way forward
Deepening the design ecosystem, university–industry programmes and stable long-term policy will decide whether India moves up the value chain from packaging to design and fabrication.
TagsSemiconductorsMake in IndiaElectronics
All current affairs for 17 September 2026