The project marks a significant step towards strengthening the domestic semiconductor ecosystem and advancing the vision of Atmanirbhar Bharat. 

• The facility will function as a vertically integrated ATMP (Assembly, Testing, Marking and Packaging) unit

Need and Significance of Promoting Domestic Semiconductor Manufacturing

• Reduces Import Dependence: Strengthens domestic semiconductor manufacturing capacity, reducing reliance on high import volumes. 
  •  Currently, India imports more than 90% of its semiconductor needs.
• Supply Chain Diversification: Currently, about 70% of the world's semiconductor manufacturing is concentrated in South Korea, Taiwan, China, the United States, and Japan.
• Boost to Emerging Sectors: Supports data centres, Artificial Intelligence, machine learning, 5G/6G communications, defence, aerospace and advanced electronics. 
• Economic Security: Reduces risk from global chip shortages (e.g., Covid-19 and Russia–Ukraine war disruptions).