{"id":87529,"date":"2026-10-28T18:20:14","date_gmt":"2026-10-28T12:50:14","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=87529"},"modified":"2026-10-28T18:20:50","modified_gmt":"2026-10-28T12:50:50","slug":"india-semiconductor-industry","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/28-10-2026\/india-semiconductor-industry","title":{"rendered":"India needs to Strengthen Capabilities in Semiconductor"},"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>At Semiconductor Summit 2026, Semiconductor Lab chief <strong>flagged India\u2019s dependence on imported technologies and the need for R&amp;D, manufacturing and specialised talent in Semiconductors.<\/strong><\/li>\n<\/ul>\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> The global semiconductor market grew at a <strong>compound annual growth rate (CAGR) of 6.5% between 2014 and 2024.<\/strong> It is projected to grow at <strong>8.5% over the next 5\u201310 years.<\/strong>\n<ul class=\"wp-block-list\">\n<li>However,<strong> recent disruptions<\/strong> have exposed vulnerabilities in the interconnected global semiconductor value chain.\u00a0<\/li>\n\n\n\n<li>Today,<strong> Taiwan, South Korea, Japan, China, and the United States <\/strong>dominate global semiconductor manufacturing.\n<ul class=\"wp-block-list\">\n<li><strong>Taiwan alone accounts for over 60% of global chip production<\/strong> 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\u2019s semiconductor demand is projected to reach <strong>USD 110 billion by FY2030 <\/strong>and <strong>exceed USD 200 billion by FY2035,<\/strong> while domestic manufacturing remains at a nascent stage.\n<ul class=\"wp-block-list\">\n<li>India spent almost <strong>USD 150 billion <\/strong>on semiconductor product imports <strong>during FY17\u2013FY25. <\/strong>Imports grew at a CAGR of<strong> 23% during this period.<\/strong>\n<ul class=\"wp-block-list\">\n<li>If this trend continues, annual imports could reach <strong>USD 240 billion by 2035.<\/strong> Building a comprehensive semiconductor ecosystem is <strong>therefore an urgent national priority.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/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\/10\/image-190.png\" alt=\"\" class=\"not-transparent wp-image-87530\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-190.png 333w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-190-300x300.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-190-150x150.png 150w\" sizes=\"auto, (max-width: 333px) 100vw, 333px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Semiconductor Mission<\/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>It 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><\/li>\n<\/ul>\n\n\n\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\n\n\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<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\/10\/image-191.png\" alt=\"\" class=\"not-transparent wp-image-87531\" style=\"--dominant-color: #cad2e1; aspect-ratio:1.7754293262879788;width:632px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-191.png 909w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-191-300x169.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-191-768x433.png 768w\" sizes=\"auto, (max-width: 909px) 100vw, 909px\" \/><\/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\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\/business\/Industry\/india-must-cut-foreign-dependence-across-semiconductor-value-chain-needs-to-build-capabilities-beyond-chip-design-says-semiconductor-lab-chief\/article71630327.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\"> At Semiconductor Summit 2026, Semiconductor Lab chief flagged India\u2019s dependence on imported technologies and the need for R&#038;D, manufacturing and specialised talent in Semiconductors. <\/li>\n<p><\/p>\n<p><strong> Semiconductor Ecosystem\u00a0 <\/strong><\/p>\n<li class=\"ms-5\"> Global Status: The global semiconductor market grew at a compound annual growth rate (CAGR) of 6.5% between 2014 and 2024. It is projected to grow at 8.5% over the next 5\u201310 years. <\/li>\n<li class=\"ms-5\"> However, recent disruptions have exposed vulnerabilities in the interconnected global semiconductor value chain.\u00a0 <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/28-10-2026\/india-semiconductor-industry \" 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-87529","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\/87529","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=87529"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87529\/revisions"}],"predecessor-version":[{"id":87533,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87529\/revisions\/87533"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=87529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=87529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=87529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}