{"id":53013,"date":"2025-09-03T21:00:40","date_gmt":"2025-09-03T15:30:40","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=53013"},"modified":"2025-09-09T13:27:33","modified_gmt":"2025-09-09T07:57:33","slug":"india-1-trillion-semiconductor-market","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/03-09-2025\/india-1-trillion-semiconductor-market","title":{"rendered":"India Sets Eyes on $1-Trillion Semiconductor Market"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recently, the Prime Minister of India, at the <strong>SEMICON India 2025 (4th Edition),<\/strong> unveiled an ambitious roadmap to position India as a global leader in semiconductor manufacturing.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Semiconductors Matter?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Semiconductors are the backbone of modern electronics \u2014 powering everything from smartphones and electric vehicles to defense systems and space technologies.<\/li>\n\n\n\n<li>These have become central to economic security and strategic independence, as the world moves toward greater digitalization and automation.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"dadee3\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"377\" height=\"400\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/size-of-the-indian-semiconductor-market.png\" alt=\"semiconductor market\" class=\"not-transparent wp-image-53014\" style=\"--dominant-color: #dadee3; width:313px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/size-of-the-indian-semiconductor-market.png 377w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/size-of-the-indian-semiconductor-market-283x300.png 283w\" sizes=\"auto, (max-width: 377px) 100vw, 377px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Semiconductor Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>33(MeitY)<\/strong> is the nodal agency responsible for implementing India\u2019s semiconductor and display ecosystem strategy. Its goals include:\n<ul class=\"wp-block-list\">\n<li>Building a vibrant semiconductor design and manufacturing ecosystem;<\/li>\n\n\n\n<li>Attracting global investments and partnerships;<\/li>\n\n\n\n<li>Supporting startups and innovators through fiscal incentives.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India Semiconductor Mission (ISM):<\/strong> It is an Independent Business Division within <strong>Digital India Corporation. <\/strong>It has been working as <strong>nodal agency<\/strong> for the Schemes approved under <strong>SEMICON India Programme.<\/strong> Key schemes under ISM are:\n<ul class=\"wp-block-list\">\n<li><strong>Semiconductor Fabs:<\/strong> Up to 50% of project cost;<\/li>\n\n\n\n<li><strong>Display Fabs:<\/strong> Up to 50% of project cost;<\/li>\n\n\n\n<li><strong>Compound Semiconductors &amp; ATMP:<\/strong> 50% of capital expenditure;<\/li>\n\n\n\n<li><strong>Design Linked Incentive (DLI):<\/strong> Support for 23 chip design startups and projects.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Recent Milestones<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>SEMICON India Programme (2025):<\/strong> It was launched with an <strong>investment of \u20b976,000 crore<\/strong>, implemented through the India Semiconductor Mission (ISM).\n<ul class=\"wp-block-list\">\n<li><strong>Theme (2025): <\/strong>\u2018Building the Next Semiconductor Powerhouse\u2019.<\/li>\n\n\n\n<li>Over 350 global companies participated in it, showcasing India\u2019s growing influence in the sector;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The Union IT Minister presented the <strong>first \u2018Made in India\u2019 chip <\/strong>\u2014 developed by <strong>ISRO\u2019s Vikram Sarabhai Space Centre (VSSC)<\/strong> and the <strong>Semiconductor Laboratory in Chandigarh<\/strong>.<\/li>\n\n\n\n<li>India launched its<strong> first Outsourced Semiconductor Assembly and Test (OSAT)<\/strong> pilot line in Sanand, Gujarat.<\/li>\n\n\n\n<li>Approval of <strong>four major semiconductor projects:<\/strong> SiCSem, CDIL, 3D Glass Solutions Inc., and ASIP.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img data-dominant-color=\"8997a8\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"576\" height=\"1024\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/challenges-in-india-semiconductor-sector-576x1024.png\" alt=\"challenges in india semiconductor sector\" class=\"not-transparent wp-image-53015\" style=\"--dominant-color: #8997a8; width:286px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/challenges-in-india-semiconductor-sector-576x1024.png 576w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/challenges-in-india-semiconductor-sector-169x300.png 169w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/challenges-in-india-semiconductor-sector-768x1366.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/challenges-in-india-semiconductor-sector-863x1536.png 863w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/challenges-in-india-semiconductor-sector.png 1063w\" sizes=\"auto, (max-width: 576px) 100vw, 576px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Fast-Tracking the India Semiconductor Mission (ISM)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India approved <strong>five new semiconductor projects<\/strong>, bringing the total to ten, with a combined investment of $18 billion (\u20b91.5 lakh crore), in 2025 alone.<\/li>\n\n\n\n<li>India is working on the next phase of the <strong>India Semiconductor Mission<\/strong> to accelerate progress, which includes:\n<ul class=\"wp-block-list\">\n<li>Faster approvals through the <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/07-12-2022\/national-single-window-system-nsws\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/ca\/current-affairs\/07-12-2022\/national-single-window-system-nsws\"><strong>National Single Window System<\/strong>, i<\/a>ntegrating both central and state-level clearances;<\/li>\n\n\n\n<li>A commitment to reduce the time from<strong> \u2018file to factory\u2019;<\/strong><\/li>\n\n\n\n<li>Support for long-term investments rather than short-term incentives.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India as a player in the Semiconductor Market<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The global semiconductor market is <strong>expected to reach USD 1 Trillion by 2030<\/strong>.<\/li>\n\n\n\n<li>India has the capacity to emerge as a key contributor to the <strong>3 primary pillars<\/strong> of the semiconductor manufacturing supply chain:\n<ul class=\"wp-block-list\">\n<li><strong>Equipment:<\/strong> Leveraging strong base of MSMEs to produce components for semiconductor equipment;<\/li>\n\n\n\n<li><strong>Materials: <\/strong>India is a rich source of chemicals, minerals and gases which can be utilized by semiconductor supply chain companies; and<\/li>\n\n\n\n<li><strong>Services:<\/strong> R&amp;D, Logistics and supply chain, major talent in AI, big data, cloud computing and IoT.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/www.thehindu.com\/news\/national\/pm-modi-addresses-the-inaugural-session-of-semicon-india-2025\/article70003009.ece\" rel=\"nofollow noopener\" target=\"_blank\">Source: TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">Recently, the Prime Minister of India, at the SEMICON India 2025 (4th Edition), unveiled an ambitious roadmap to position India as a global leader in semiconductor manufacturing.<\/li>\n<p><\/p>\n<h3><strong>Why Semiconductors Matter?<\/strong><\/h3>\n<li class=\"ms-5\">Semiconductors are the backbone of modern electronics \u2014 powering everything from smartphones and electric vehicles to defense systems and space technologies.<\/li>\n<li class=\"ms-5\">These have become central to economic security and strategic independence, as the world moves toward greater digitalization and automation.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/03-09-2025\/india-1-trillion-semiconductor-market\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-53013","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/53013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=53013"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/53013\/revisions"}],"predecessor-version":[{"id":53457,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/53013\/revisions\/53457"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=53013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=53013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=53013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}