
Made-in-India Semiconductor Chip to Debut by 2025: Union Minister Ashwini Vaishnaw
Union IT and Electronics Minister Ashwini Vaishnaw announced that the first domestically manufactured semiconductor chip is expected to be ready for production by 2025. Vaishnaw highlighted India's significant progress in semiconductor manufacturing over the past three years, driven by the India Semiconductor Mission (ISM), launched in December 2021.
India's Semiconductor Ambitions Take Shape
The ISM provides incentives to encourage semiconductor manufacturers to establish facilities and operational plans within India. This initiative offers financial support for various units, including:
- Semiconductor fabrication units
- Display fabrication units
- Compound semiconductor units
- Semiconductor assembly, testing, marking, and packaging (ATMP) units
- Design-linked incentives
Key Partnerships and Investments
Several significant developments are underway:
- Micron: Announced plans in June 2023 to build a semiconductor assembly and testing plant in Gujarat.
- Tata Electronics and PSMC: Partnered in September 2024 to establish India's first semiconductor fabrication unit. This facility aims to produce up to 50,000 wafers per month, serving industries such as automotive, computing and data storage, and wireless communication.
Strategic Importance and Government Support
Major Indian conglomerates like Larsen & Toubro (L&T) and the Adani Group are also entering the semiconductor space, highlighting the industry's growing strategic importance to India's economic and national security. The Indian government is collaborating with the US under the US-India Initiative on Critical and Emerging Technology (iCET), focusing on areas such as AI, quantum computing, semiconductors, and wireless telecommunications.
The government is also actively seeking to support Indian innovators in deep AI, semiconductors, and electronics, fostering a robust domestic ecosystem.
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