With ₹62,900 Cr already allocated, India’s semiconductor mission enters execution mode, targeting end-to-end chip sovereignty by 2030.
97% of Chip Manufacturing Fund Now Committed
The Indian government has committed ₹62,900 crore, or 97% of the ₹65,000 crore earmarked for semiconductor manufacturing incentives under the India Semiconductor Mission (ISM). This substantial allocation reflects the Centre’s urgency in building domestic chip-making capabilities.
- Funds remaining can only support smaller projects, according to IT Secretary S Krishnan.
- The full ISM budget of ₹76,000 crore is divided as follows:
- ₹65,000 Cr for chip production
- ₹10,000 Cr for modernising the Semiconductor Laboratory (Mohali)
- ₹1,000 Cr for the design-linked incentive scheme
India’s First Packaged Chip by December 2025
Minister of State for IT, Jitin Prasada, recently announced that India’s first homegrown chip is expected to be packaged and ready by December 2025.
- This milestone underscores the country’s progress in building full-stack capabilities—from design to fabrication and packaging.
- Union Minister Ashwini Vaishnaw, at the World Economic Forum (Davos), reiterated India’s chip ambitions under the ‘Made in India’ vision.
Four New Projects Approved Under ISM
The momentum continues as the government cleared four new projects worth ₹4,594 crore last week. These will be located in:
- Bhubaneswar, Odisha (2 projects)
- Punjab (1)
- Andhra Pradesh (1)
This decision reflects a geographically distributed approach to building semiconductor capacity across the country.
Capacity and Infrastructure: India Scaling Up
India is constructing its first commercial-scale silicon fab, with a planned capacity exceeding 50,000 wafer starts per month—a figure well above the industry average.
As per Ashwini Vaishnaw, six units are currently in various phases of construction:
- 1 fabrication plant
- 5 ATMP (Assembly, Testing, Marking, Packaging) facilities
Additionally, four more projects were recently approved:
- 1 silicon carbide fab
- 3 more ATMP units, including one advanced packaging facility
Building the Entire Chip Ecosystem
India’s chip strategy is holistic, aiming to reduce import dependence and position itself in the global semiconductor value chain. This includes:
- Design and IP development
- Wafer fabrication and foundries
- Advanced packaging and testing
- Supply chain inputs such as equipment, chemicals, and specialty gases
The government launched the India Semiconductor Mission (ISM) in December 2021, with the intent to provide financial support and attract both domestic and global players.
A $150 Billion Opportunity by 2030
India’s homegrown semiconductor market is projected to reach $150 billion by 2030, driven by surging demand in:
- Automotive electronics
- Telecom and 5G
- Consumer electronics
- Defense and aerospace
- IoT and industrial applications
If executed successfully, this initiative could help India reduce its semiconductor import bill, improve national security, and create thousands of high-skill jobs.
