1. Home
  2. Blog
  3. UPSC

Establishment of Semiconductor Units

Why is it in the news?

  • The Indian Cabinet has approved the establishment of three semiconductor units as part of the “Development of Semiconductors and Display Manufacturing Ecosystems in India”

These units include:

  • The Semiconductor Fab will be established in Dholera, Gujarat, in partnership with companies from Taiwan.
  • Semiconductor ATMP (assembly, testing, marking, and packaging) unit will be set up in Morigaon, Assam.
  • A specialized Semiconductor ATMP unit for specialized chips will be established in Sanand, Gujarat, in partnership with companies from Japan and Thailand.


About Semiconductor Industry

路聽聽聽聽聽聽 Semiconductors, also known as integrated circuits (IC), possess properties between conductors and insulators.

路聽聽聽聽聽聽 A semiconductor fab, or fabrication plant, manufactures integrated chip circuits and silicon wafers, which are crucial components in electronics such as diodes, transistors, and integrated circuits.

路聽聽聽聽聽聽 Semiconductors are integral to various electronic devices and emerging technologies like AI, 5G, and IoT.

路聽聽聽聽聽聽 The global semiconductor industry is projected to reach a trillion-dollar valuation by 2030, according to McKinsey.

路聽聽聽聽聽聽 The United States, Taiwan, and China are recognized as semiconductor powerhouses.

路聽聽聽聽聽聽 Deloitte forecasts the Indian semiconductor market to achieve a valuation of US$ 55 billion by 2026.





  • The establishment of these semiconductor units aligns with India’s goal of developing a robust semiconductor and display manufacturing ecosystem.
  • It aims to reduce dependency on imports and foster indigenous production of semiconductor components, contributing to India’s self-reliance in the electronics sector.
  • This initiative is expected to generate employment opportunities, promote technological innovation, and bolster India’s position in the global semiconductor market.


Government Initiatives聽

路聽聽聽聽聽聽 National Policy on Electronics (NPE):聽India has launched the National Policy on Electronics (NPE) in 2019, with the aim of creating a globally competitive electronics manufacturing industry in the country.

路聽聽聽聽聽聽 Semicon India Program:聽The Union Cabinet had also approved the Semicon India Program, with an outlay of INR 76,000 crore for the development of a sustainable semiconductor and display manufacturing ecosystem in India.

路聽聽聽聽聽聽 India Semiconductor Mission (ISM):

ISM was launched in 2021 under the aegis of the Ministry of Electronics and IT (MeitY) for the development of a sustainable semiconductor and display ecosystem in the country. Its components include

路聽聽聽聽聽聽 Scheme for setting up of Semiconductor Fabs in India

路聽聽聽聽聽聽 Scheme for setting up of Display Fabs in India

路聽聽聽聽聽聽 Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India.

路聽聽聽聽聽聽 Design Linked Incentive (DLI) Scheme:聽It offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design.

路聽聽聽聽聽聽 Foreign Direct Investment (FDI) Norms:聽100% FDI is allowed under the automatic route.

路聽聽聽聽聽聽 The 鈥淢ake in India鈥澛燾ampaign and the聽Electronics Manufacturing Cluster (EMC)聽scheme aim to attract investments and promote semiconductor manufacturing in the country.


Get free UPSC Updates straight to your inbox!

Discover more from AMIGOS IAS

Subscribe now to keep reading and get access to the full archive.

Continue reading