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India Semiconductor Mission (ISM) — Govt Scheme for UPSC | Vaidra
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India Semiconductor Mission (ISM)

Ministry of Electronics and Information TechnologyactivetechnologyLaunched: 2021-01-01

About the Scheme

India Semiconductor Mission was launched in December 2021 with ₹76,000 crore incentive package to develop a sustainable semiconductor and display manufacturing ecosystem. In 2024: Cabinet approved 3 major projects — Tata Electronics (Dholera), Tata Semiconductor Assembly (Assam), CG Power-Renesas (Sanand). India''s first chips to roll out by 2025-26.

Target Beneficiaries: Electronics manufacturing sector; downstream component industry; 1 lakh+ direct and indirect jobs projected

Implementing Agency: India Semiconductor Mission (ISM) under the Ministry of Electronics and Information Technology (MeitY)

Official Website →

✦Key Features

  • ₹76,000 crore incentive package: 50% fiscal support for semiconductor fab; 30% for ATMP/OSAT
  • 3 major projects approved (2024): Tata Electronics Dholera fab (28nm), Tata Semiconductor Assembly Assam, CG Power-Renesas Sanand
  • India''s first indigenous semiconductor chips expected by 2025-26
  • Special incentives for Compound Semiconductors, Silicon Photonics, SiC power devices
  • Design Linked Incentive (DLI) scheme: incentivizes IC design startups
  • MoU with US, EU, Japan, South Korea for semiconductor supply chain cooperation
  • Targets 1 lakh+ jobs; reduction of $200 billion annual electronics import dependency

✓Eligibility Criteria

  • Companies/consortia proposing to set up semiconductor fabrication facilities in India.
  • Companies/consortia proposing to set up display fabrication facilities in India.
  • Companies engaged in compound semiconductors, silicon photonics, and sensor fabs.
  • Indian companies and startups involved in semiconductor design and IP development.
  • Entities meeting specific technical, financial, and operational criteria as defined by the ISM.

★Benefits

  • Reduced reliance on imports for critical electronic components, enhancing 'Atmanirbhar Bharat'.
  • Creation of high-tech employment opportunities across manufacturing, design, and R&D sectors.
  • Stimulation of economic growth and attraction of significant foreign direct investment (FDI).
  • Strengthening India's position in global technology supply chains and national security.
  • Development of a vibrant domestic electronics manufacturing ecosystem and innovation hub.

▶Application Process

  • Submission of detailed applications and proposals to the India Semiconductor Mission (ISM) portal.
  • Thorough evaluation of proposals by a high-level committee of experts.
  • Technical and financial due diligence of the applicant entities.
  • Approval of eligible projects and signing of Memorandum of Understanding (MoU).
  • Disbursement of incentives linked to achieving pre-defined project milestones and performance indicators.
  • Ongoing monitoring and review of project progress by the ISM.

₹ Budget Allocation

76000

UPSC Relevance

GS Paper: GS3

Prelims Relevance9%
Mains Relevance9%

Syllabus Tags

TechnologySemiconductorsManufacturingAtmanirbhar BharatGS3