“The chip is the oxygen of the digital age.” – Pat Gelsinger, CEO, Intel Corporation
India’s big semiconductor leap
India is gearing up for a massive expansion in its semiconductor ecosystem, with the government planning to boost its investment to $20 billion in the next phase of the India Semiconductor Mission (ISM). The Ministry of Electronics and Information Technology (Meity) has submitted a proposal to the Finance Ministry to double the initial funding, with final approval expected by the end of 2025.
Phase two aims to double output
The second phase of ISM aims to significantly increase India’s domestic chip and fabrication capacity. Tata Electronics, TSAT, and Micron are leading the projects approved so far, with combined investments exceeding $15 billion. Meity’s new dossier will assess progress from the first phase and compare India’s semiconductor incentives to those offered by the US, EU, and East Asian nations.
Learning from global chip giants
Globally, nations are racing to strengthen semiconductor manufacturing. The US CHIPS Act provides over $52 billion in incentives, while the EU’s Chips Act mobilizes more than €43 billion in public and private funds. India’s move to expand its mission mirrors this global push for supply chain independence and technological sovereignty.
Balancing incentives and execution
While policy and funding are key, the challenge lies in effective execution. Market dynamics, technology transfer, and talent development will decide the success of India’s semiconductor ambition. Policy stability and R&D incentives remain vital for sustaining long-term growth in this capital-intensive sector.
Towards a full-stack chip ecosystem
India’s long-term goal is to evolve from chip assembly to full-stack semiconductor design and manufacturing. If executed well, the $20 billion plan could mark India’s transition from a technology consumer to a global chip producer, securing its place in the strategic tech race.
Summary
India’s semiconductor mission is expanding to $20 billion in its second phase, aligning with global chip-building efforts by the US and EU. With projects led by Tata, Micron, and others, India aims to create a self-reliant chip ecosystem and reduce dependence on foreign supply chains.Food for thought
Can India’s $20 billion chip mission truly compete with the massive subsidies and R&D strength of global semiconductor giants?AI concept to learn: Semiconductor fabrication
Semiconductor fabrication, or “fab,” is the process of creating integrated circuits on silicon wafers. It involves multiple precision steps etching, doping, and layering to produce microchips that power everything from smartphones to satellites.
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