Cabinet approves one more semiconductor unit under India Semiconductor Mission (ISM) | Current Affairs | Vision IAS
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Cabinet approves one more semiconductor unit under India Semiconductor Mission (ISM)

Posted 03 Sep 2024

Updated 04 Sep 2024

2 min read

The approved unit will be set up in Sanand, Gujarat with a capacity of 60 Lakh chips per day.

  • More such units are being set up in Dholera, Gujarat, Morigaon, Assam etc. with cumulative capacity of about 7 crore chips per day.

Why is India focussed on developing Semiconductor manufacturing?

  • Dependency on imports: Semiconductors are essential components in various modern technologies, from smartphones to medical devices and vehicles. 
    • The consumption of electronic devices has sharply increased in India and majority of this demand is being fulfilled by imports.
    • For instance in 2019, semiconductor exports from India stood at US$ 0.33 billion while imports were higher at US$ 4.65 billion. 
  • Global supply chain diversification: The semiconductor value chain has seen a shift due to pandemic-related disruptions and rising labour costs, prompting global producers to diversify away from China. 
    • Currently, about 70% of the world's semiconductor manufacturing is concentrated in South Korea, Taiwan, China, the United States, and Japan.

About India Semiconductor Mission (ISM)

  • India Semiconductor Mission (ISM) is a specialized and independent Business Division within the Digital India Corporation.
    • It has been working as nodal agency for the Schemes approved under Semicon India Programme. 

Semicon India Programme/Modified Programme for Semiconductors and Display Fab Ecosystem under MeitY

  • Approved with outlay of Rs 76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country. 
  • It aims to provide financial support to companies through schemes such as: 
    • Semicon India Future Design: Design Linked Incentive (DLI) Scheme
    • ‘Modified Scheme for setting up of Semiconductor Fabs in India’ 
    • ‘Modified Scheme for setting up of Display Fabs in India’ (for manufacturing TFT LCD or AMOLED based display panels )
    • ‘Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab etc.
  • Tags :
  • India Semiconductor Mission (ISM)
  • Semiconductor Manufacturing in India
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