12 semiconductor plants approved in India

Why in the news ?

On May 5, the central government approved two new semiconductor plants, one of which could be India's first display fabrication unit. With this, a total of 12 chip plants have been approved so far under the India Semiconductor Mission (ISM), a nearly ₹76,000 crore (approximately $1.7 billion) initiative aimed at promoting chip manufacturing in India.

Why are semiconductors important ?

• Semiconductors are the foundation of every electronic device today—from mobile phones, cars, computers to fighter jets.
• Amid rising global tensions and supply chain challenges, India is striving to become self-reliant in this sector and secure a place in the global supply chain.

India Semiconductor Mission (ISM)

• Launched in 2021, this scheme aims to create a complete chip manufacturing ecosystem in India – fabrication, packaging, design, and display manufacturing – with an investment of approximately ₹1.64 lakh crore.
• The government is now focusing on further strengthening equipment, raw materials, and design capabilities through ISM 2.0.

Where are chip plants being set up in India ?

• These 12 plants are being set up in states like Gujarat, Assam, Uttar Pradesh, Odisha, Andhra Pradesh, and Punjab.

Major Projects :

Why is this decision important ?

• Semiconductors are used in every electronic device, from toasters to fighter jets.
• Given current geopolitical tensions, reducing dependence on other countries for chips will prove to be a game changer for India's security and economy.

The Way Forward: What's New ?

• According to sources, under ISM 2.0, the government may slightly reduce the 50% subsidy for assembly and testing plants, but the focus will remain on strengthening India's IP (intellectual property) and design ecosystem.

Conclusion

• India's semiconductor mission is a major step towards making the country self-reliant in technology manufacturing. However, the real challenge now will be to complete these projects on time and remain globally competitive.