GS3 – Indian Economy
Context
The Union Cabinet has approved four additional semiconductor assembly and testing facilities under the India Semiconductor Mission (ISM), aiming to boost domestic manufacturing and reduce reliance on imports.
Details of Approved Semiconductor Units
- Locations & Specialisation:
- Odisha (2 plants): Manufacture silicon carbide diodes, MOSFETs, and semiconductor packages.
- Andhra Pradesh (1 plant): Assemble chip packages.
- Punjab (1 plant): Produce high-power semiconductors for electric vehicles and renewable energy applications.
- Cumulative Impact: With these approvals, ISM now supports 10 projects across six states, including four facilities in Gujarat.
About India Semiconductor Mission (ISM)
- Nodal Programme: Administered by the Ministry of Electronics and Information Technology (MeitY).
- Launch & Framework: Launched in 2021 under the ₹76,000 crore Semicon India Programme.
- Objectives:
- Reduce dependence on semiconductor imports.
- Establish India as a reliable global supplier.
- Support & Incentives:
- Offers up to 50% capital assistance for eligible projects.
- Supports all stages of semiconductor production: assembly, testing, marking, and packaging.
- Ecosystem Development:
- Provides Design Linked Incentive (DLI) funds, fosters chip design, IP development, and shared infrastructure.
- Conducts talent development programmes to strengthen the skilled workforce.