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.