India’s Semiconductor Mission Gains Momentum

India’s push to build a domestic semiconductor ecosystem gained fresh momentum as the government reviewed progress under the India Semiconductor Mission (ISM). The review focused on the development of semiconductor fabrication units, allied infrastructure, and efforts to strengthen supply-chain resilience in a sector considered vital for economic and national security.

Semiconductors form the backbone of modern digital economies, powering everything from smartphones and electric vehicles to defence systems and critical infrastructure. India’s heavy reliance on imports for chips has exposed it to global supply disruptions, as witnessed during the pandemic-induced chip shortage. The ISM seeks to address this vulnerability by encouraging domestic manufacturing through fiscal incentives, policy support, and partnerships with global technology players.

One of the key strategic objectives of the mission is to reduce import dependence. Establishing fabrication units and advanced packaging facilities within India will help ensure supply security and lower exposure to geopolitical and market shocks. A resilient semiconductor supply chain is also essential for the stability of downstream industries such as electronics manufacturing, automotive production, and telecommunications.

The mission has significant implications for the digital and defence sectors. Indigenous chip manufacturing will enhance technological sovereignty, support secure defence electronics, and strengthen India’s position in emerging areas such as artificial intelligence, 5G/6G, and the Internet of Things. This aligns with broader initiatives like “Make in India” and “Atmanirbhar Bharat”.

Additionally, the semiconductor push is expected to generate high-skill employment across design, fabrication, testing, and research and development. By fostering an ecosystem of innovation, academia–industry collaboration, and skilled workforce development, the India Semiconductor Mission aims to position India as a key player in the global semiconductor value chain.