{"id":85091,"date":"2026-09-18T18:08:11","date_gmt":"2026-09-18T12:38:11","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=85091"},"modified":"2026-09-18T18:08:26","modified_gmt":"2026-09-18T12:38:26","slug":"semiconductor-ecosystem-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/18-09-2026\/semiconductor-ecosystem-india","title":{"rendered":"India\u2019s Emerging Semiconductor Ecosystem"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Science and Technology\/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>Prime Minister inaugurated the <strong>SEMICON India 2026<\/strong> exhibition features six Country Pavilions representing Japan, South Korea, Malaysia, the Netherlands, Singapore, and Sweden.<\/li>\n\n\n\n<li><strong>Theme:<\/strong> \u201cSilicon to Systems: Building the Ecosystem.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#fff2cc\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\"><strong>Semiconductors and Chip Making<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>A semiconductor <\/strong>is a material whose electrical conductivity can be controlled.\n<ul class=\"wp-block-list\">\n<li><strong>Conductors<\/strong> such as copper allow current to flow easily, while insulators strongly resist it.\u00a0<\/li>\n\n\n\n<li><strong>Semiconductor materials can be engineered<\/strong> to switch, amplify, sense or control electrical signals.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Silicon <\/strong>is the most widely used <strong>semiconductor material.<\/strong> It is obtained from <strong>silica,<\/strong> which occurs abundantly in <strong>sand<\/strong>.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"cddbe3\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"643\" height=\"364\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-145.png\" alt=\"semiconductors and chip making\" class=\"not-transparent wp-image-85096\" style=\"--dominant-color: #cddbe3; aspect-ratio:1.766592255516442;width:487px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-145.png 643w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-145-300x170.png 300w\" sizes=\"auto, (max-width: 643px) 100vw, 643px\" \/><\/figure>\n<\/div><\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Semiconductor Ecosystem&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Global Status:<\/strong>\u00a0 Semiconductors have emerged as a strategic resource for economic growth, technological leadership, and national security.\n<ul class=\"wp-block-list\">\n<li>The global semiconductor market grew at a compound annual growth rate (CAGR) of 6.5 per cent between 2014 and 2024. It is projected to grow at 8.5 per cent over the next 5\u201310 years.<\/li>\n\n\n\n<li>\u00a0However, recent disruptions have exposed vulnerabilities in the interconnected global semiconductor value chain.\u00a0<\/li>\n\n\n\n<li>Geopolitical tensions have further highlighted the risks of supply dependence.\u00a0<\/li>\n\n\n\n<li>Today, Taiwan, South Korea, Japan, China, and the United States dominate global semiconductor manufacturing.\n<ul class=\"wp-block-list\">\n<li>Taiwan alone accounts for over 60% of global chip production and nearly 90% of advanced chips.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India\u2019s Position: \u00a0 <\/strong>India is witnessing rapidly rising semiconductor demand.\n<ul class=\"wp-block-list\">\n<li>It is projected to reach USD 110 billion by FY2030 and exceed USD 200 billion by FY2035, while domestic manufacturing remains at a nascent stage. India spent almost USD 150 billion on semiconductor product imports during FY17\u2013FY25.<\/li>\n\n\n\n<li>Imports grew at a CAGR of 23 per cent during this period.\n<ul class=\"wp-block-list\">\n<li>\u00a0If this trend continues, annual imports could reach USD 240 billion by 2035. Building a comprehensive semiconductor ecosystem is therefore an urgent national priority.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Various Steps&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India Semiconductor Mission 1.0<\/strong>\n<ul class=\"wp-block-list\">\n<li>India Semiconductor Mission 1.0 is a flagship programme launched in <strong>2021 <\/strong>under the <strong>Ministry of Electronics and Information Technology (MeitY)<\/strong> to develop a comprehensive semiconductor and display manufacturing ecosystem in India.<\/li>\n\n\n\n<li>The Mission is supported by an incentive framework of <strong>\u20b976,000 crore<\/strong>, offering fiscal support of up to<strong> 50% <\/strong>for silicon fabs, compound semiconductor facilities, assembly and testing units, and chip design.<\/li>\n\n\n\n<li>As many as <strong>12 semiconductor<\/strong> manufacturing projects have been approved with an investment pipeline of about <strong>\u20b91.64 lakh crore<\/strong> under the mission.<\/li>\n\n\n\n<li>These include <strong>silicon fabrication units, silicon carbide fabs, advanced and memory packaging facilities, and specialised assembly and testing infrastructure.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India Semiconductor Mission 2.0<\/strong>\n<ul class=\"wp-block-list\">\n<li>It was announced in the Union Budget <strong>2026\u201327.<\/strong><\/li>\n\n\n\n<li><strong>ISM 2.0<\/strong> will focus on <strong>producing semiconductor equipment and materials in India, <\/strong>designing full stack Indian semiconductor intellectual property, and fortifying both domestic and global supply chains.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"75b8d8\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"612\" height=\"315\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-143.png\" alt=\"\" class=\"not-transparent wp-image-85094\" style=\"--dominant-color: #75b8d8; aspect-ratio:1.9430002976485763;width:497px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-143.png 612w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-143-300x154.png 300w\" sizes=\"auto, (max-width: 612px) 100vw, 612px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li>Semicon 2.0 seeks to build the semiconductor ecosystem through <strong>six pillars- Design, Machines and materials, Setting up more fabs, Further strengthening the ATMP-OSAT industry, Research and Development and Talent development.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why are Semiconductors Strategically Important?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Foundation of the Digital Economy:<\/strong> Semiconductors form the core component of almost every modern electronic device and digital technology.<\/li>\n\n\n\n<li><strong>National Security:<\/strong> Semiconductor chips are indispensable for defence equipment, surveillance systems, satellites, cybersecurity infrastructure and strategic communication networks.<\/li>\n\n\n\n<li><strong>Industrial Competitiveness: <\/strong>Countries with strong semiconductor manufacturing capabilities are leveraging technological leadership and industrial competitiveness.<\/li>\n\n\n\n<li><strong>Technological Sovereignty: <\/strong>Domestic semiconductor production is necessary to reduce the dependence on foreign suppliers and strengthen self-reliance.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img data-dominant-color=\"a9d5ea\" data-has-transparency=\"false\" style=\"--dominant-color: #a9d5ea;\" loading=\"lazy\" decoding=\"async\" width=\"333\" height=\"333\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-141.png\" alt=\"\" class=\"not-transparent wp-image-85093\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-141.png 333w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-141-300x300.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-141-150x150.png 150w\" sizes=\"auto, (max-width: 333px) 100vw, 333px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Indigenous Microprocessors and Core Semiconductor Technologies<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Microprocessors form the <strong>foundational layer<\/strong> of modern digital infrastructure, <strong>powering devices and systems across telecommunications<\/strong>, mobility, healthcare, industry, defence, and space.\u00a0<\/li>\n\n\n\n<li>India has made <strong>focused investments to build sovereign capabilities<\/strong> in advanced processor design as a core pillar of semiconductor self-reliance.<\/li>\n\n\n\n<li>A key milestone in this journey is the launch of<strong> DHRUV64<\/strong>, a fully indigenous <strong>64-bit microprocessor<\/strong> developed by C-DAC under the <strong>Microprocessor Development Programme (MDP).<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"cad2e1\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"909\" height=\"512\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-142.png\" alt=\"\" class=\"not-transparent wp-image-85092\" style=\"--dominant-color: #cad2e1; aspect-ratio:1.7754293262879788;width:532px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-142.png 909w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-142-300x169.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/09\/image-142-768x433.png 768w\" sizes=\"auto, (max-width: 909px) 100vw, 909px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the Challenges?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>High Capital Investment: <\/strong>The establishment of semiconductor fabrication plants requires investments of several billion dollars and long gestation periods.<\/li>\n\n\n\n<li><strong>Technology-Intensive Industry: <\/strong>Semiconductor manufacturing requires highly sophisticated technologies that are continuously evolving.<\/li>\n\n\n\n<li><strong>Dependence on Imported Equipment:<\/strong> India remains dependent on foreign suppliers for advanced semiconductor manufacturing equipment and specialised machinery.<\/li>\n\n\n\n<li><strong>Infrastructure Requirements: <\/strong>Semiconductor fabrication requires uninterrupted electricity, ultra-pure water and highly reliable logistics infrastructure.<\/li>\n\n\n\n<li><strong>Skill Gaps: <\/strong>The industry requires a highly specialised workforce trained in semiconductor engineering, fabrication processes and chip design.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India Semiconductor Mission 2.0 marks a decisive shift from <strong>ecosystem creation to ecosystem consolidation<\/strong> and global integration.\u00a0<\/li>\n\n\n\n<li>By deepening support for manufacturing, design, and advanced skills, ISM 2.0 <strong>positions semiconductors as a strategic national capability<\/strong>\u2014central to economic resilience, digital infrastructure, and technological sovereignty.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/semicon-india-2026-indias-semiconductor-ecosystem-expanding-opening-new-opportunities-says-modi\/article71475696.ece\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> Prime Minister inaugurated the SEMICON India 2026 exhibition features six Country Pavilions representing Japan, South Korea, Malaysia, the Netherlands, Singapore, and Sweden. <\/li>\n<p><\/p>\n<p><strong> Semiconductors and Chip Making <\/strong><\/p>\n<li class=\"ms-5\"> A semiconductor is a material whose electrical conductivity can be controlled. <\/li>\n<li class=\"ms-5\"> Conductors such as copper allow current to flow easily, while insulators strongly resist it.\u00a0 <\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/18-09-2026\/semiconductor-ecosystem-india\" class=\"btn btn-primary btn-sm float-end\">Read More<\/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-85091","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\/85091","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=85091"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/85091\/revisions"}],"predecessor-version":[{"id":85099,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/85091\/revisions\/85099"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=85091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=85091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=85091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}