Basic Properties

• Semiconductors are materials with electrical properties that fall between those of conductors (like metals) and insulators (like rubber).
• They have a unique ability to conduct electricity under certain conditions while acting as insulators under others.
• They are sometimes referred to as integrated circuits (ICs) or microchips made from pure elements, typically silicon or germanium.
• In a process called doping, small amounts of impurities are added to these pure elements, causing large changes in the conductivity of the material.

Applications: Semiconductors are used in a vast range of electronic devices.

• Transistors, which are fundamental components of modern electronic circuits, rely on semiconductor materials.
• They act as switches or amplifiers in everything from computers to cell phones.
• Semiconductors are also used in solar cells, LEDs, and integrated circuits.

Semiconductor Market

• Industry estimates place the Indian semiconductor market at approximately $38 billion in 2023</mark>, with projections indicating growth to <mark class="hltr-green">$109 billion by 2030.
• This growth is driven by strong demand and government initiatives like the production-linked incentive scheme.
• According to a report by the India Electronics and Semiconductor Association and Counterpoint Research, mobile handsets and IT sectors are leading the market by contributing over 75 percent of revenues.

Assam

Semi conductor plant in Morigaon, Assam by TATA, to produce 48 million semi conductor chips everyday from mid 2025

Semicon India program

Launched in 2021 Financial outlay of 76,000 crore Schemes included - Modified scheme for setting up of

1. Semiconductor fabs in India
2. Display fabs in India
3. Compound semi conductors
4. Design linked incentive scheme

January 2026 - Design Linked Incentive Scheme

Achievements so far

• 16 tape-outs
• 6 ASIC chips
• 10 patents
• 3× private investment leveraged
• 24 DLI supported chip design projects
• Main value driver
  • 50% of value addition
  • 20 - 50% of Bill of Materials cost (BOM)
  • 30 - 35% of global semiconductor sales

About

• Launched: 2021
• Ministry: Ministry of Information and Broadcasting & Ministry of Electronics and Information Technology
• Nodal Agency: C-DAC (Centre for Development of Advanced Computing)

Objective

• Build a self-reliant domestic chip design ecosystem
• Support startups & MSMEs in semiconductor design
• Reduce import dependence and boost indigenous innovation

Key Features & Benefits

Financial Incentives (2 categories): ◦ Product Design Linked Incentive ◦ Deployment Linked Incentive Design Infrastructure Support ◦ Provided through ChipIN Centre ◦ Remote access to: ▪ National EDA Tool Grid ▪ Repository of IP Cores ▪ Fiscal support for MPW prototyping ▪ Post-silicon validation support

Eligibility

Startups & MSMEs ◦ Eligible for financial incentives ◦ Eligible for design infrastructure support Other Domestic Companies ◦ Eligible for financial incentives for deployment of semiconductor designs

February 2025

Madhya Pradesh approves Semi conductor policy

• State cabinet approved the Madhya Pradesh Semi conductor policy, 2025 that gives capital and interest subsidy as well as land at concessional rates and subsidised electricity for fab units and design facility and other industrial units related to semi conductors.

IRIS chip - indigenously made

• IIT Madras & ISRO successfully developed and booted an aerospace-grade, SHAKTI-based semiconductor chip.
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April 2025

Indian Semiconductors (The Week Magazine)

₹91,000 crore - India's first commercial semiconductor fabrication plant

Among all the developments, perhaps the most ambitious is the 91,000 crore rupees plan to build India's first commercial semiconductor fabrication plant - a cornerstone of technological self reliance.

Imported 18.43 billion chips worth $20.7 billion

• The country lacks a commercial fabrication facility, forcing it to continue importing 95% of its chips from China, Taiwan, South Korea and Singapore.
• ! In 2023 - 2024, India imported 18.43 billion chips and system on chips worth $20.7 billion.

Restricted opportunistic take overs of Indian companies

In April 2020, the government moved to restrict opportunistic take overs of Indian companies by entities from countries it shares land border with.

Barred Huawei from 5G trials and supplying mobile carrier equipments

• A year later, barring Chinese telecom giant Huawei from participating in 5G trials. By June 2021, India has also barred Huawei from supplying equipment to mobile carriers.

$80 billion by 2026

India's semiconductor market is booming, it is expected to surpass $80 billion by 2026 and $110 billion by 2030.

Supply chain disintegrated globally

No single entity is in full control in semiconductor chips manufacturing. It is a global symphony with: Lithography machines from Netherlands Speciality gases from Japan Fabrication hubs in Taiwan and South Korea

• A single tremor, in Japan or a drought in Taiwan can send shockwaves through the global economy.

1962 - India's semiconductor started to take form

India's semiconductor foray began in 1962, when BEL started producing germanium transistors. In 1980s, the sector got $40 million investment from the government to establish a Semiconductor complex limited (SCL) in Mohali, Punjab - India's first fabrication facility.

This happened before Taiwan Semiconductor manufacturing company, now global leader even entered the industry.

A state controlled, non competitive environment hindered government companies. How do then Chinese companies, which are also state run and state controlled, could lead the world in many sectors and dominating in another some??

Rock's law, which says the cost of semiconductor fabrication plant doubles every four years. It became increasingly expensive to remain competitive.

Moore's law - The principle that transistor density in integrated circuits doubles every roughly 2 years.

A devastating fire at SCL's Mohali facility in 1989 further pushed India behind as US, Taiwan, Japan, South Korea marched ahead. What was the reason for the fire? was that incident investigated properly? Other than India, all the countries mentioned above are all weather allies of US, but India never was and never will be. Was this too a sabotage by CIA?

Indian government in 2007 unsuccessfully tried to attract private players in semiconductor manufacturing by offering a host of incentives, including capital subsidy of up to 25%.

The Andhra Pradesh government's Fab City project announced in 2006, but failed after major investors SemIndia and Nano Tech Silicon India backed out following global financial crisis.

In 2017, the government decided to absorb the initial investment risk.

In 2021, government launched the India Semiconductor Mission (ISM) as an independent division within the Digital India Corporation, a not for profit company established in 2013.

The following year, the PM launched the Semicon India Programme, more than $10 billion as incentives for companies establishing fabrication units and other facilities.

SCL was upgraded to 180 nano meter tech, which we got in collaboration with Tower Semiconductor of Israel.

In 2022, Gujarat became one of the first states to introduce a dedicated semiconductor policy that charted a five year plan to attract global players.

Assam got a facility in Jagiroad, in Morigaon district built by Tata Electronics. Assam's proximity to south east asia as a strategic advantage, with the government announcing that it was in talks to host representatives from the ASEAN countries. Assam government is training 3000 young people through NASSCOM and other agencies.

India has signed an agreement with US to establish a semiconductor fab dedicated to national security.

A unique advantage that India has in the semiconductor space is that 20% of global chip designing workforce is based in the country.

Semiconductors have become critical as three major streams - geopolitical, geo economic and technological have converged making them a top priority for nations as a strategic imperative.

Taiwan, producing over 60% of advanced chips is vital to global supply chains.

India cannot aim for complete self sufficiency in semiconductors, which no country can. Pic:

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Indian government has introduced an incentive scheme to encourage domestic semiconductor design. The programme is currently managed by Centre for Development of Advanced Computing (C-DAC), a government run entity.

Unlike fabrication, chip assembly and packaging are more labour intensive, making India well suited for this segment due to inexpensive workforce.

India has announced four new ATMP (assembly, testing, marking, packaging) plants with Micron leading the way.

To stay competitive, India must avoid restrictive policies like limiting domestically made chips to the local market, which would stifle innovation and global expansion.

Unless import duties are lowered, Indian chip assemblers will struggle against global competitors, who can source raw materials more cheaply.

Taiwan relies on photolithography machines from Netherlands and customers from US and Europe. It has taken over three decades for Taiwan to reach this stage. India must take a similar long term approach.

Today, over 70% of Indians own smartphones. A decade ago, this number was 19%.

One notable shift to take place is the declining dependence on chinese semiconductors. At present, in 2025, China is the India's largest source of chip imports. Due to China + one policy, countries like Germany, Israel, Taiwan, Japan, US, Vietnam and Malaysia will fill the gap in near future, reducing India's exposure to chinese suppliers.

70 to 80% of the products we manufacture are both strategic and commercial. Our focus is currently on 28nm and above. We are also looing at 65 nm and 90 nm, as analog and memory devices can be made with these mature technologies.

April 2026

Sanand bridge to Silicon Valley

• Prime Minister Narendra Modi positioned Gujarat's Sanand as an emerging link in the global semiconductor network after inaugurating a semiconductor facility of Keynes Semicon in Sanand, in Ahmedabad.

India's Techade

Current period is the decade of India.

• India's current global semiconductor market is at ₹4.5 lakh crore.

• A target of reaching ₹9 lakh crore by 2030 is set under India Semiconductor Mission.

• India's semiconductor market could exceed $100 billion by the end of the decade.