In Short:
The Ministry of Electronics & IT is planning to increase funding for the Indian Semiconductor Mission due to its popularity. The goal is to have 2-3 more semiconductor fabrication units in the country. The scheme offers fiscal support for setting up semiconductor units, with recent approvals for Tata and other companies. These units will help India develop capabilities in chip fabrication and advanced packaging technologies. The government aims to create 20,000 direct jobs and 60,000 indirect jobs in advanced technology areas. The ultimate goal is to establish a semiconductor ecosystem in India and reduce reliance on China and Taiwan.
MeitY set to increase funding for Indian Semiconductor Mission
Exciting news coming from the Ministry of Electronics & IT (MeitY) as they plan to boost the funds under the renowned Indian Semiconductor Mission (ISM) scheme! The current ₹76,000-crore fund is set to increase due to its growing popularity worldwide.
Enhancing ISM
“We can increase funding when the ISM scheme gets exhausted. If we have to bring more fabs in the country, then we may need more money, and may have to bring in more funds to this focus area,” shared S Krishnan, Secretary MeitY in an interview with ETTelecom.
Future Goals
In the next 2 to 3 years, the government aims to have 2-3 additional semiconductor fabrication (fab) units established in the country. Krishnan emphasized the importance of government support in this capital-intensive industry.
Recent Developments
In 2021, the Prime Minister Narendra Modi government launched the ISM with an investment of ₹76,000 crore, providing fiscal support to approved applicants for setting up semiconductor fabrication units in India.
Last month, the Cabinet approved the establishment of three more semiconductor units in the country, including Tata’s two plants.
New Ventures
One of the ventures includes Tata’s semiconductor chip fabrication facility in Gujarat in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) with a significant investment. Additionally, Tata Semiconductor Assembly and Test Private Limited (TSAT) announced the setup of a semiconductor unit in Assam.
Industry Impact
The establishment of these units will boost India’s capabilities in chip fabrication and develop advanced packaging technologies domestically. This move is expected to create a semiconductor ecosystem in the country, potentially challenging the dominance of China and Taiwan in the long run.
Employment Opportunities
The government estimates that these units will generate around 20,000 direct employment opportunities in advanced technology sectors, with an additional 60,000 indirect jobs. This paves the way for a brighter future in the semiconductor industry for India!
