With the second phase of the India Semiconductor Mission securing the Union cabinet’s clearance, the country is set for a global race with fresh impetus. The government envisions the mission, planned at a total budget outlay of Rs 1.27 lakh crore, to attract investment of around Rs 4 lakh crore, leading to production worth Rs 2 lakh crore. The cabinet has also approved a Rs 62,500-crore mobile phone manufacturing scheme, which is expected to complement Semicon 2.0. Targeted measures will drive the semiconductor mission across broad domains such as chip design, fabrication plants, research and development (R&D), intellectual property ownership, and talent development.
The mission is well-timed, as India can no longer defer a strong presence in the field of semiconductors – a critical foundational technology with applications in diverse industries. Self-reliance has become imperative following events in recent years, particularly the supply-chain disruptions during the pandemic years that exposed the country’s vulnerabilities. Geopolitical conflicts such as the ongoing war in West Asia serve as a reminder of the persistent threat of larger disruptions. Over-dependence on a small group of nations – the United States, Japan, China, and South Korea – presents a critical constraint. A supply bottleneck originating from these countries due to political, economic or unforeseen events can have a debilitating effect on multiple domestic industries in India. A nation of India’s scale cannot be dependent on other countries in sectors vital to the economy and national security. India has a marginal footprint on the global semiconductor map. In 2024-25, its domestic market was estimated at $50 billion. The global market is projected to reach $1 trillion this year. This gap makes a case for India to urgently augment its capabilities.
Developing a semiconductor ecosystem is extremely demanding, requiring massive and steady investment. This also needs to be complemented with technology upgrades and intellectual expertise. A large section of top-class Indian professionals in the field is based outside the country. This is where a targeted, comprehensive strategy to groom and retain domestic talent becomes crucial. Policy must also be directed towards shaping vibrant R&D spaces. This can be a structural shift that elevates the semiconductor sector and benefits the broader landscape of science and technology. At an operational level, the industry will require extensive infrastructure; this includes uninterrupted power supply and logistics at the highest levels of efficiency. Navigating these challenges on the technology and skill sides and reimagining innovation frameworks to meet global standards will determine the outcomes of India’s ambitious semiconductor mission. (Source: DH)
