What is Indian Semiconductor Mission: A Key to Global Tech Leadership

• January 23, 2025
• by admin
• Semiconductor
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In the age of digital dependency, semiconductors have emerged as the cornerstone of technological innovation. From smartphones to satellites, these tiny chips power the engines of modern life. Yet, as geopolitical tensions and supply chain disruptions reshape global priorities, India is making bold strides to secure its place in this high-stakes domain. 

The India Semiconductor Mission (ISM) has captured the world’s attention and heralds a paradigm shift for the country’s tech aspirations. But what exactly is the ISM, and why is it pivotal in the global tech race?

The Birth of India’s Semiconductor Mission

Launched in December 2021 as part of the broader Production Linked Incentive (PLI) scheme, the India Semiconductor Mission (ISM) is a government initiative designed to foster semiconductor and display manufacturing ecosystems in India. Spearheaded by the Ministry of Electronics and Information Technology (MeitY), ISM envisions transforming India into a global hub for electronics manufacturing.

In 2024, Union Minister Ashwini Vaishnaw reiterated the government’s commitment, emphasizing, “The semiconductor ecosystem is not just about manufacturing; it is about innovation, talent, and self-reliance.” The ISM aims to build the infrastructure and talent required to bolster India’s semiconductor capabilities, with a projected investment of ₹76,000 crores ($10 billion).

Why the Semiconductor Race Matters: A Global Tech Tug-of-War

Semiconductors power virtually every modern device, from smartphones and automobiles to AI systems and medical equipment. The global semiconductor market, valued at $600 billion in 2023, is projected to cross $1 trillion by 2030. India, despite being one of the largest consumers of semiconductors, contributes less than 2% to global production. This dependency exposes the country to supply chain disruptions, as seen during the pandemic.

1. Supply Chains in Crisis

The COVID-19 pandemic exposed vulnerabilities in global semiconductor supply chains. By 2024, estimates from the Semiconductor Industry Association (SIA) revealed that global demand for chips has surged by 17% annually, creating unprecedented bottlenecks. India’s participation in this space can mitigate global dependency on East Asia, particularly Taiwan, which currently accounts for over 60% of the world’s semiconductor manufacturing.

2. Strategic Autonomy

India’s semiconductor push aligns with its broader agenda of strategic autonomy. A self-reliant semiconductor industry strengthens national security by reducing dependency on imports for critical technologies, including defense systems and telecommunications.

3. Economic and Technological Leap

The ISM is projected to add $100 billion to India’s GDP by 2030, according to a Deloitte 2024 report. With semiconductors integral to AI, IoT, and 5G advancements, India stands to elevate its position in the global technology value chain.

Silicon Valley to Silicon Bharat: Building the Ecosystem

1. Skill Development and Research

The ISM prioritizes building a talent pipeline. In April 2024, the government launched the “Chip-to-Market” initiative, collaborating with premier institutions like IIT Madras to train 85,000 professionals annually in semiconductor design and manufacturing.

2. Global Collaborations

India has forged strategic partnerships with global giants like Intel, Micron Technology, and TSMC. In July 2024, Micron announced its plans to set up a $2.75 billion semiconductor assembly and test facility in Gujarat. Such investments signify India’s growing importance in the global tech landscape.

3. Policy Framework

The Semiconductor Laboratory (SCL) in Mohali received a revamp in early 2024, reflecting the government’s commitment to fostering indigenous manufacturing. The creation of high-tech clusters, tax incentives, and infrastructure support further bolster the mission’s foundation.

Challenges Along the Way with India Semiconductor Mission

1. Technological Know-How

Despite progress, India still lags in deep-tech capabilities for advanced node manufacturing (below 10nm). Closing this gap requires sustained R&D investments and knowledge transfer from established players.

2. High Capital Expenditure

Semiconductor fabs are capital-intensive, with setup costs averaging $20 billion per facility. While government subsidies are vital, attracting private players and global investors remains a hurdle.

3. Global Competition

India isn’t the only player eyeing semiconductor dominance. The U.S., under its CHIPS Act, and the EU, with its Digital Compass Plan, are pouring billions into semiconductor development. Staying competitive in this race will demand relentless innovation.

India Semiconductor Mission’s Ripple Effect: Transforming Industries

1. Automotive Boom

With India poised to become the world’s third-largest automobile market by 2025, the semiconductor mission is a boon for the automotive industry, powering innovations in EVs and autonomous vehicles.

2. Electronics Revolution

The Indian electronics market, valued at $118 billion in 2024, is set to double by 2028. ISM’s success will significantly reduce import dependency and position India as a global exporter of consumer electronics.

3. Fintech and Smart Devices

Semiconductors are pivotal for fintech innovations like biometric ATMs and IoT-enabled payment solutions. Companies like Evolute Group are leveraging these advancements to redefine India’s financial landscape.

Voices of Vision: Expert Opinions

Nasscom President Debjani Ghosh stated in February 2024, “India’s semiconductor ambition is not just a national priority but a global necessity. We need collaboration across sectors to achieve this vision.” Echoing similar sentiments, Intel CEO Pat Gelsinger remarked during a visit to India in March 2024, “India’s demographic dividend and policy push make it a key partner in reshaping the global semiconductor narrative.”

How Glomore is Contributing to the Indian Semiconductor Mission

Glomore Electro-Tech Solutions contributes to the Indian Semiconductor Mission (ISM) by strengthening India’s semiconductor manufacturing ecosystem through advanced capabilities in multi-layer PCB assembly, SMT technology, and IoT-enabled smart factory models. 

With a focus on localized production, the company aids in reducing dependency on imports while supporting sustainable manufacturing practices like lead-free component production and energy-efficient processes. 

Glomore’s R&D efforts in electronics and its alignment with Industry 4.0 standards position it as a critical enabler of ISM’s vision to establish India as a global hub for semiconductor innovation and manufacturing.

Future of the Semiconductor Industry in India: A Bright Horizon

The future of the semiconductor industry in India is brimming with potential, fueled by government initiatives, private investments, and a surge in demand for advanced technologies. By 2025-26, India is expected to command a significant share of the global semiconductor market, with projected demand surpassing $64 billion, according to a report by KPMG. This growth is driven by the proliferation of AI, IoT, and 5G technologies, which are reshaping industries from healthcare to automotive.

Emerging Trends and Opportunities

• Advanced Manufacturing: With a focus on sub-10nm chip production, India is poised to close the technological gap with global leaders like Taiwan and South Korea.
• Green Semiconductors: Investments in energy-efficient and sustainable chip manufacturing processes will ensure India stays ahead in eco-friendly technology.
• Global Talent Hub: India’s burgeoning pool of engineers, coupled with training initiatives like “Chip-to-Market,” positions the country as a preferred destination for R&D activities.

Vision 2030 and Beyond

Looking ahead, India’s semiconductor sector is not just a manufacturing powerhouse but a hub of innovation. The government’s ambitious goal of hosting 10 semiconductor fabs by 2030 and fostering startups in design and testing could establish India as a leader in the global semiconductor supply chain.

As we approach 2025, India is not only gearing up to meet its domestic demand but also shaping its narrative as a reliable global partner in semiconductors—a key player in the global tech race.

Interesting Facts About India Semiconductor Mission

1. Launch: The India Semiconductor Mission (ISM) was launched in December 2021.

2. Budget: The Indian government has allocated approximately USD 10 billion for the ISM.

3. Incentives: The ISM offers a 50% subsidy on semiconductor projects, with additional state-level incentives.

4. Target: The mission aims to attract investments worth INR 1.5 trillion (USD 18.2 billion) in semiconductor manufacturing.

5. Value Chain: The ISM focuses on the entire semiconductor value chain, including design, manufacturing, assembly, testing, marking, and packaging (ATMP).

6. Market Size: India’s semiconductor market is projected to reach USD 110 billion by 2030, with a CAGR of 16%.

7. Domestic Consumption: India’s semiconductor consumption is expected to surpass USD 80 billion by 2026.

8. Design Talent: India has a significant pool of semiconductor design engineers, accounting for up to 20% of the global workforce.

9. Strategic Location: India’s geographical proximity to major markets in Asia, Africa, and Europe offers a strategic advantage.

10. Global Supply Chain: The ISM aims to contribute to a more resilient global semiconductor supply chain.

11. Job Creation: The mission is expected to create millions of direct and indirect jobs in India.

12. Technology Transfer: The ISM will facilitate technology transfer and collaboration with global semiconductor players.

13. R&D: The mission will promote research and development in semiconductor technologies.

14. Skill Development: The ISM will focus on developing a skilled workforce for the semiconductor industry.

15. Infrastructure: The Indian government is investing in infrastructure development to support the semiconductor industry.

16. Global Competition: The ISM aims to make India a global hub for semiconductor manufacturing.

17. Reliance on Imports: India currently relies heavily on imports for semiconductors, making it vulnerable to global supply chain disruptions.

18. PLI Scheme: The Production-Linked Incentive (PLI) scheme is a key component of the ISM, providing financial incentives to companies investing in semiconductor manufacturing.

19. Global Partnerships: The ISM will foster partnerships with global semiconductor companies and research institutions.

20. Long-Term Vision: The ISM is a long-term initiative aimed at transforming India into a global leader in semiconductor technology.

The Road Ahead for Indian Semiconductor Mission

India’s semiconductor mission is more than an economic program—it’s a technological renaissance. To summarize the key takeaways:

• Economic Impact: The ISM aims to contribute $100 billion to India’s GDP by 2030.
• Global Partnerships: Collaborations with industry leaders like Micron and TSMC underline India’s growing role in the tech ecosystem.
• Skill Development: Initiatives to train 85,000 professionals annually address the talent gap in the semiconductor industry.
• Strategic Importance: Reducing dependency on East Asia ensures greater self-reliance and national security.

With its ambitious vision and robust policy framework, the India Semiconductor Mission is on track to redefine India’s role in the global tech race. The journey may be fraught with challenges, but the potential rewards far outweigh the risks. By investing in infrastructure, talent, and innovation, India is not just chasing the global tech race—it’s reshaping it.

India’s semiconductor story is only just beginning.