Modi Govt Bets Big on Semiconductors

With chip demand rising and import dependence growing costly, the Government of India launched the India Semiconductor Mission (ISM) to position the country as a global semiconductor manufacturing hub.

Mission Aims

  • Build a Complete Semiconductor Ecosystem

    Develop fabs, assembly units, testing facilities, and packaging – all within India.

  • Reduce Import Dependence

    Make India a trusted global destination for chip design and manufacturing.

  • Boost Security

    Localise chip production and secure supply chains.

  • Power the Digital Economy

    Strengthen India’s capabilities across sectors supported by chips, including smartphones, electric vehicles, artificial intelligence, defence systems, and industrial technologies.

Govt Incentives

  • The Centre offers to cover a significant share of project costs on a matching basis to encourage private investment in semiconductor facilities.

  • Grants are provided to private players, supplemented by contributions from state governments.

  • States such as Gujarat and Odisha offer additional incentives to attract semiconductor projects.

  • The Design Linked Incentive (DLI) scheme supports start-ups and academic institutions by offering financial support and advanced design tools.

Key Private Players Under the India Semiconductor Mission

Multiple global and domestic companies have committed to building semiconductor-related facilities across India. These include projects focusing on:

  • Assembly, testing, marking, and packaging units

  • Outsourced semiconductor assembly and testing

  • Display driver chip production

  • Power electronics

  • Silicon carbide-based wafers and modules

  • Glass substrate technology

  • Fabrication units

  • Packaging and advanced semiconductor components

Crafting the Future

India is rapidly transforming into a competitive player in the global chip ecosystem. With strong government support, technical incentives, and increasing private sector participation, the country is setting the stage for advanced semiconductor manufacturing and technological self-reliance.