A “Semiconductor 2.0” policy will further boost the industry, enabling AI chip and GPU design. Significant investments and project approvals across six states demonstrate India’s commitment to becoming a key player in the global semiconductor market.
New Delhi [India]: India is taking its semiconductor mission to an advanced level, with plans to move from 28-nanometre fabs towards the manufacturing of advanced 5-7-nanometre chips, Abhishek Singh, Additional Secretary, Ministry of Electronics and Information Technology, said. He said that the government’s investments in the semiconductor sector are designed to bridge the gap with global leaders in chip-making. “It is well known that government has been investing into the sector to ensure that we are able to catch up with the world’s best in semiconductor manufacturing,” he noted, speaking with ANI on Wednesday. Singh highlighted the progress already made in setting up assembly, testing, marking and packaging (ATMP) plants and fabs in partnership with industry majors. “We started with several ATMP plants with fab manufacturing with Tata and other industry partners in Gujarat, in Assam and other places. In Odisha, some plants have also been approved,” he said.
Semiconductors Drive India’s Growth
While India has begun with 28 nanometre plants, the ambition is to climb rapidly up the technology ladder. “So what we do believe is that while we have started with the 28 nanometre plants and others, but the government has plans to go to much more advanced chips. We heard about our administrator talking about 5 to 7 nanometres,” Singh said.
The next phase, he added, will be powered by a stronger policy framework. “And we do hope that with Semiconductor 2.0 coming in, the design-led incentive scheme coming in, we will be able to go further on the value chain and be able to contribute to the semiconductor ecosystem,” Singh added. He underlined that this transition is not just about manufacturing but also about enabling India’s role in the artificial intelligence revolution. “This will also help us in moving up on the AI race, because we are working toward designing AI chips. We are working toward designing GPUs in India. And when we are able to do that, we’ll be able to address some of the challenges that we have,” Singh said.
Semiconductors are at the heart of modern technology. They power essential systems in healthcare, transport, communication, defence, and space. As the world moves toward greater digitalisation and automation, semiconductors have become integral to economic security and strategic independence.
In just four years, since the launch of the India Semiconductor Mission (ISM) in 2021, India has transformed its semiconductor journey from vision to reality. To support this vision, the government announced a Rs 76,000 crore Production Linked Incentive (PLI) scheme, of which nearly Rs 65,000 crore has already been committed. Additionally, on August 28, a major milestone in India’s semiconductor journey was achieved with the launch of one of the country’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) Pilot Line Facilities in Sanand, Gujarat. Semiconductor company CG-Semi is expected to roll out the first ‘Made in India’ chip from this pilot facility. In June 2023, the government approved the first proposal for establishing a semiconductor unit in Sanand. As of the date, the government has approved 10 semiconductor manufacturing projects with a cumulative investment of more than Rs 1.60 lakh crore in six states: Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh. The Ministry of Electronics and Information Technology (MeitY) has already begun work on the next phase of India’s semiconductor programme, Semicon 2.0, and is currently holding internal discussions and with various line ministries to finalise its contours.
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)