Chip voyage from paperwork to wafer work on track: PM Narendra Modi

10 projects cleared under ISM as Centre readies Phase-II of semicon mission

India’s push to build an end-to-end semiconductor ecosystem may have started late, but nothing can stop the country from accelerating with reforms that will make it a full-stack semiconductor nation, Prime Minister Narendra Modi said on Tuesday.

 

Speaking at the fourth edition of the SEMICON India conference, Modi said that with growing capabilities in the sector, India was poised to capture a major share of the global chip market, projected to touch $1 trillion in the coming years.

 

“Speed matters the most in the semiconductor space. The shorter the time from file to factory, the shorter the journey from paperwork to wafer work. Our government is working with this thought,” Modi said at the inaugural session.

 

On India’s semiconductor journey so far, Modi noted that the government had, without delay, cleared the first semiconductor project within 18 months of the Union Cabinet approving the India Semiconductor Mission (ISM) in December 2021.

 

After the first set of approvals in 2023, the government cleared India’s first semiconductor chip fabrication (fab) project in 2024 and has since approved 10 projects under ISM, he added. To further boost India’s chip ambitions, the government is preparing the second phase of ISM, Modi said.

 

The ₹76,000 crore ISM, announced in December 2021, has nearly exhausted its funds. Approvals have already been granted for one chip fab, one compound semiconductor fab, and eight Outsourced Semiconductor Assembly and Test as well as Assembly, Testing, Marking, and Packaging units, Ministry of Electronics and Information Technology (IT) Secretary S Krishnan said on Monday. He was speaking at the launch of the India Cellular & Electronics Association’s Semiconductor Leadership Forum.

 

Meanwhile, Electronics and IT Minister Ashwini Vaishnaw said construction of five domestic semiconductor projects was progressing rapidly.

 

 

“The pilot line of one unit (CG Power and Industrial Solutions) is complete, and we just presented the first made-in-India chips to the Prime Minister. Two more units are expected to start production in a few months. Overall, the foundation of this foundational industry has been laid very well,” Vaishnaw said, adding that he hoped to see India transform into a product nation within a few years. India, he said, continued to stand out as a stable economy amid global turmoil.

 

The next phase of ISM will also cover power electronics, automotive, consumer electronics, medical devices, and defence projects, Vaishnaw said later at a press conference.

 

“We will continue that same approach and extend strong support to equipment and material manufacturers, as well as other ecosystem partners. That will be a key part of the allocation,” he said.

 

The government has also identified 25 chip products — ranging from high-value low-volume to mid-value mid-volume and high-volume low-value categories — and will bring them under the revamped design-linked incentive scheme, he said.

 

“That matrix has been finalised. These products will also be supported by the government,” Vaishnaw said.

 

During the inaugural session, ASML Chief Executive Officer Christophe Fouquet said India’s semiconductor growth represented an opportunity not only for economic expansion and job creation but also for national resilience.

 

“By developing semiconductor manufacturing and design capability, India can secure its supply chains, foster innovation and entrepreneurship, and create new opportunities. At ASML, we see India as a partner with great potential. We are committed to helping you as we shape the future of semiconductors,” Fouquet said.