NEWS

Prime Minister Narendra Modi launched Semicon India 2025 and announced the “next phase” of the India Semiconductor Mission. He said soon, “India’s smallest chip will drive the biggest change in the world.”

HIGHLIGHTS

What is the India Semiconductor Mission?

• Launched in 2021 with ₹76,000 crore.
• Aim: Build semiconductor fabrication units, testing plants, and design ecosystems in India.
• 10 projects already approved – 2 fabs (chip-making factories) and 8 packaging/testing facilities.

Government’s New Plans

• Plug-and-Play Infrastructure: Ready-to-use facilities where companies can set up instantly.
• Single-Window Clearance: Faster approvals for investors.
• Incentives & Grants: Support for both production and design of chips.
• Skilled Workforce: Training 60,000 engineers with help from global companies.
• Focus on Intellectual Property (IP): Ensure chip designs belong to India.

Why are Chips Important?

• Chips are called “digital diamonds” (like oil was “black gold”).
• They power mobiles, computers, AI, defence systems, renewable energy, and communication.
• Without chips, modern technology cannot work.

Global Context

• Semiconductor market is worth $600 billion, expected to reach $1 trillion soon.
• India aims for a significant share.
• Start-ups like Mindgrove Technologies are developing chips using IIT Madras’s SHAKTI processor.
• Global firms like AMD, Applied Materials, and Microchip are investing $1.1 billion in R&D in India.

Challenges

• Supply Chain Issues: Shortage of rare earth minerals and raw materials.
• Complex Manufacturing: A chip plant requires 500–1,500 precise steps with clean rooms, water, and uninterrupted power.