From Chip Importer to Chip Maker

 

1. India’s semiconductor market was valued at 38 billion dollars in 2023, rose to 45-50 billion dollars in 2024-25, and is projected to reach 100-110 billion dollars by 2030.

2. India Semiconductor Mission (ISM) was approved by the Union Cabinet in December 2021 with an outlay of 76,000 crore rupees to support fabrication, display manufacturing, and chip design initiatives.

3. The mission includes four schemes covering semiconductor fabs, display fabs, compound semiconductors with Assembly Testing Marking and Packaging (ATMP) or Outsourced Semiconductor Assembly and Test (OSAT) units, and design incentives support.

4. The Design Linked Incentive (DLI) scheme carries an outlay of 1,000 crore rupees and offers support for development, design tools, and incentives up to 15 crore rupees per firm.

5. Since the launch of the Design Linked Incentive (DLI) scheme in 2022, government support of 234 crore rupees was committed for chip design projects from 22 companies in India.

6. These Design Linked Incentive (DLI)-backed projects have a total project cost of 690 crore rupees, while supported startups together raised over 380 crore rupees from investors in India recently.

7. More than 72 companies had received access to advanced software tools for chip design, while 278 academic institutions and 72 startups received Electronic Design Automation (EDA) tools under mission.

8. Around 60,000 students had benefited from semiconductor training by August 2025, and 20 student-designed chips from 17 institutions had already been fabricated under government-supported programmes in India nationwide.

9. The government plans to develop 85,000 skilled workers in semiconductor design over ten years, while a projected shortfall of 10 lakh skilled workers is expected by 2032 nationally.

10. In May 2025, two advanced design facilities focused on 3-nanometer chips were inaugurated in Noida and Bengaluru, following earlier achievements in 7-nanometer and 5-nanometer design by India previously.

11. India had 10 approved semiconductor projects across six states by August 2025, with cumulative investment of around 1.60 lakh crore rupees spanning fabrication, packaging, and testing facilities nationwide.

12. Four additional semiconductor units were approved on 12 August 2025 with an outlay of 4,600 crore rupees, taking total approved projects under the mission to ten in India.

13. The HCL-Foxconn joint venture (JV) approved in May 2025 at Jewar, Uttar Pradesh, involves 3,700 crore rupees and is designed for 20,000 wafers monthly with 36 million units annually.

14. CG Power’s Sanand project, approved in February 2024, involves about 7,600 crore rupees and targets output of 15 million chips per day through assembly and testing facilities.

15. Tata Electronics and Powerchip Semiconductor Manufacturing Corporation (PSMC) are setting up a Dholera fab with about 91,000 crore rupees investment and capacity of 50,000 wafers per month in Gujarat state.

Must Know Terms :

1.ATMP

Assembly Testing Marking and Packaging (ATMP) is the downstream stage of semiconductor manufacturing where fabricated chips are assembled, tested, marked, and packaged before market use. India’s semiconductor programme gives major importance to ATMP because it helps complete the value chain domestically. Several approved projects under India Semiconductor Mission include ATMP-linked capacity, especially in Gujarat, Odisha, and other emerging chip hubs.

2.OSAT

Outsourced Semiconductor Assembly and Test (OSAT) refers to specialised facilities that assemble, package, and test semiconductor chips for commercial deployment. It is crucial because fabrication alone does not complete chip production. In India, CG Power’s Sanand unit became one of the first major end-to-end OSAT-linked pilot line facilities. The project represents India’s practical shift from policy support to production-oriented semiconductor capability.

3.DLI

Design Linked Incentive (DLI) is the government support scheme aimed at strengthening India’s chip design ecosystem. It carries an outlay of 1,000 crore rupees and provides assistance for development, design tools, and incentives up to 15 crore rupees per firm. Since 2022, support of 234 crore rupees has been committed for design projects from 22 companies working on semiconductor innovation.

4.EDA

Electronic Design Automation (EDA) refers to advanced software tools used for semiconductor chip design, simulation, verification, and optimisation. These tools are indispensable for modern chip development because advanced semiconductor circuits cannot be designed manually. Under India’s semiconductor initiatives, 278 academic institutions and 72 startups received access to EDA tools by August 2025, helping strengthen domestic design and training capacity.

5.PSMC

Powerchip Semiconductor Manufacturing Corporation (PSMC) is the Taiwanese semiconductor company partnering with Tata Electronics for India’s major fabrication unit at Dholera, Gujarat. The project involves about 91,000 crore rupees and is designed for 50,000 wafers per month. PSMC’s role is important because it brings fabrication expertise, global manufacturing experience, and technological depth into India’s growing domestic semiconductor ecosystem.

6.HCL-Foxconn JV

HCL-Foxconn joint venture (JV) is one of the semiconductor units approved under India Semiconductor Mission in May 2025. Located at Jewar, Uttar Pradesh, it involves an investment of 3,700 crore rupees. The project is designed for 20,000 wafers per month and 36 million units annually. It is important because it adds display-driver chip manufacturing capacity to India’s approved semiconductor pipeline.

Key Takeaways

a) India’s chip market is booming, set to hit $100–110 Bn by 2030.

b) India Semiconductor Mission (₹76,000 Cr outlay)boosts local manufacturing, design, and talent.

b) On 12^thAugust, 2025, four more semiconductor units were approved; with an outlay of 4600 crore.

c) Total approved projects under ISM reaches to 10with cumulative investments of around 1.60 lakh crore in 6 states.

d) India is emerging as a global semiconductor hubwith major investments and events like SEMICON India 2025.

e) Semicon India 2025from 300+ global exhibitors and 18 countries, signalling India’s rise as a trusted chip partner.

 

MCQ :

 

1. India’s semiconductor market was valued at what level in 2023?
A) 28 billion dollars
B) 38 billion dollars
C) 48 billion dollars
D) 58 billion dollars

2. India’s semiconductor market is projected to reach what level by 2030?
A) 80–90 billion dollars
B) 90–100 billion dollars
C) 100–110 billion dollars
D) 110–120 billion dollars

3. India Semiconductor Mission (ISM) was approved in:
A) 2020
B) 2022
C) 2023
D) 2021

4. The total outlay of India Semiconductor Mission is:
A) ₹56,000 crore
B) ₹66,000 crore
C) ₹76,000 crore
D) ₹86,000 crore

5. The Design Linked Incentive (DLI) scheme has an outlay of:
A) ₹500 crore
B) ₹1,000 crore
C) ₹1,500 crore
D) ₹2,000 crore

6. Maximum incentive per firm under DLI scheme is:
A) ₹10 crore
B) ₹20 crore
C) ₹15 crore
D) ₹25 crore

7. Government support committed under DLI projects since 2022 is:
A) ₹134 crore
B) ₹234 crore
C) ₹334 crore
D) ₹434 crore

8. Total project cost of DLI-backed projects is:
A) ₹590 crore
B) ₹790 crore
C) ₹690 crore
D) ₹890 crore

9. Number of companies supported under DLI projects is:
A) 20
B) 22
C) 24
D) 26

10. Number of institutions and startups receiving EDA tools includes:
A) 178 institutions and 52 startups
B) 278 institutions and 62 startups
C) 278 institutions and 72 startups
D) 378 institutions and 72 startups

11. Number of students benefited from semiconductor training by August 2025 is:
A) 40,000
B) 50,000
C) 60,000
D) 70,000

12. Number of student-designed chips fabricated is:
A) 10
B) 15
C) 20
D) 25

13. Number of approved semiconductor projects in India by August 2025 is:
A) 8
B) 9
C) 10
D) 11

14. Investment involved in Tata-PSMC Dholera fab project is about:
A) ₹81,000 crore
B) ₹91,000 crore
C) ₹71,000 crore
D) ₹101,000 crore

15. Capacity of Tata-PSMC semiconductor fab is:
A) 40,000 wafers per month
B) 60,000 wafers per month
C) 50,000 wafers per month
D) 70,000 wafers per month