MissionFocus on India’s self-reliance
Launched in 2021 with a financial outlay of Rs 76,000 crore, the Semicon
India program is structured to promote the domestic semiconductor industry
through incentives and strategic partnerships. India’s Semiconductor market
will be approximately $38 billion in 2023. The industry is estimated to grow
$109 billion by 2030.
The Government of India has implemented several initiatives to promote domestic
semiconductor manufacturing and rapid expansion of the industry so that the
country can reduce its dependence on the import of semiconductors.
The India Semiconductor Mission (ISM) aims to build a sustainable semiconductor
and display ecosystem which will position India as a leader in electronics
manufacturing and design. Guided by international semiconductor experts, ISM
coordinates efforts across government ministries, industry, and academic
institutions to ensure efficient deployment of resources and support.
Launched in 2021 with a financial outlay of Rs 76,000 crore, the Semicon India
program is structured to promote the domestic semiconductor industry through
incentives and strategic partnerships. This initiative supports various sectors of the
semiconductor industry, extending beyond just fabrication facilities (fabs) to
include packaging, display wires, Outsourced Semiconductor Assembly and
Testing (OSATs), sensors, and other critical components, creating a
comprehensive ecosystem. Under the program, four schemes have been introduced
namely the Modified Scheme for setting up Semiconductor Fabs in India, the
Modified Scheme for setting up Display Fabs in India, the Modified Scheme for
setting up Compound Semiconductors/ Silicon Photonics/ Sensors Fab/ Discrete
Semiconductors Fab and Semiconductor ATMP/ OSAT facilities in India, and
Design Linked Incentive (DLI) Scheme.
The Morigaon semiconductor facility in Assam is part of a wider network of
government-backed projects to bolster India’s semiconductor production
capabilities. The Union Cabinet has approved the establishment of multiple
semiconductor units across the nation, including new facilities by Tata Electronics
in Dholera, Gujarat, and CG Power in Sanand, Gujarat. Additionally, Kaynes
Semicon Pvt Ltd was approved to set up a unit in Sanand as well. This expansion
signifies India’s commitment to reducing reliance on semiconductor imports and
fortifying its position in the global semiconductor value chain.
The government also focuses on modernizing the Semi-Conductor Laboratory in
Mohali and implementing the Scheme for Promotion of Manufacturing of
Electronic Components and Semiconductors (SPECS) and the Production Linked
Incentive (PLI) Scheme for large-scale electronics. These efforts ensure support for
every segment of semiconductor production, fostering an ecosystem that
encompasses chip design, fabrication, testing, and assembly.
The Morigaon unit marks a pivotal step toward achieving India’s semiconductor
ambitions. This project, along with others approved under the Semicon India
program, strengthens India’s technological foundation and supports the nation’s
vision for economic resilience and self-reliance. As the demand for semiconductors
surges worldwide, India’s burgeoning semiconductor infrastructure is set to drive
innovation, create jobs, and secure the country’s position as a significant player in
the global digital economy.
