India will become the king of semiconductor industry, a big step towards becoming self-reliant…

In view of the increasing demand for semiconductor chips worldwide, India has rapidly advanced its semiconductor manufacturing plan. The main objective of this ambitious scheme launched in December 2021 is to make India a major chip manufacturing hub in the global market. Recently, India has approved five major semiconductor projects, making significant progress in this direction.

government stimulus package

The Government of India has issued a huge incentive package of Rs 76,000 crore to encourage the semiconductor industry. In this, four chip packaging plants and one fabrication unit have been approved. These units are likely to be operational between 2025 and 2027. Seeing the success of the projects, companies are now demanding the second phase of this scheme (ISM 2.0).

need for second phase

Semiconductor chips are vital for almost all electronics products, be it smartphones, smart TVs, electric cars or toys. Semiconductor production requires huge amounts of raw materials and equipment, calling for expansion of the plan. The Government of India wants to make semiconductor production sustainable and competitive under “Self-reliant India”, so that disruptions in the global supply chain can be avoided in the future.

Interest from domestic and global companies

Many major companies have shown interest in India's growing semiconductor sector. Micron Technology has started an Assembling, Testing, Marking and Packaging (ATMP) unit in India by investing $2.7 billion. Apart from this, domestic companies like Tata Group, Murugappa Group and Keynes Semicon are also ready to invest in this sector.

importance of semiconductor

Semiconductor chips are used in every modern device, such as smartphones, laptops, and smart TVs, as well as in advanced sensors and infotainment systems in automotive and electric vehicles. This technological self-reliance will make India an important player in the global semiconductor supply chain.

This ambitious plan of India will not only make the country technologically self-reliant, but will also help it get an important place in the global semiconductor industry. With the success of the existing projects, India may soon be in a position to compete with countries like America, China, Taiwan and South Korea.

This visit will not only impact the country's electronics manufacturing industry, but it will also have a deep impact on the economy and employment opportunities.