Is the Government Ready to Launch Semiconductor Mission 2.0?
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Synopsis
The Indian government is set to launch Semiconductor Mission 2.0, marking a significant step in strengthening the country's semiconductor industry. With $30 billion in fiscal support anticipated, India's role in the global chip market is poised for expansion. Prime Minister Modi emphasizes the nation's growing influence and readiness to collaborate with international investors.
Key Takeaways
- The Indian government is launching Semiconductor Mission 2.0.
- Nearly $30 billion in fiscal support is expected.
- India produces around 1.1 million STEM graduates per year.
- Significant investments in the semiconductor sector are underway.
- PM Modi emphasizes India's pivotal role in the global chip market.
New Delhi, Sep 2 (NationPress) The Indian government is gearing up to introduce the second phase of the India Semiconductor Mission (ISM), as nearly all financial support from the initial phase has been allocated, stated Electronics and IT Secretary S. Krishnan on Tuesday.
During his address at Semicon India 2025 in New Delhi, Krishnan highlighted that funding for ISM 1.0 was predominantly committed, with only a few remaining projects in the finalization stage.
"We are in the concluding phases of preparing ISM 2.0, which will soon be made public," he remarked.
Both the Central and state governments are expected to offer approximately $30 billion in fiscal support to strengthen the semiconductor sector, according to the Secretary.
He pointed out India’s strengths, mentioning that the country produces around 1.1 million STEM graduates annually and employs over 20% of the world's semiconductor design engineers.
Moreover, he highlighted the rapid expansion of the mobile phone industry and the increasing relevance of chips in space and defense as compelling reasons for international investors to engage with India.
In a related event, Prime Minister Narendra Modi inaugurated ‘Semicon India 2025’ and emphasized that the world now has confidence in India, expressing readiness to co-create the future of the semiconductor industry, with the government poised to unveil the next wave of reforms in the semiconductor domain.
PM Modi emphasized India’s escalating position in the global chip market, asserting that the country is on track to play a crucial role in the trillion-dollar semiconductor sector.
"Since 2021, investments of $18 billion are being directed towards 10 semiconductor projects that have received approval," he stated.
"The world trusts India, believes in India, and is prepared to collaborate in building the future of semiconductors in India," the Prime Minister remarked, adding that while the last century was defined by oil, the future will be defined by chips.
The Prime Minister observed that the global semiconductor market, currently valued at $600 billion, is set to surpass the $1 trillion threshold, with India poised to be a significant player.
Point of View
It is clear that India's proactive approach towards Semiconductor Mission 2.0 reflects its commitment to becoming a global hub for semiconductor production. With substantial government backing and a robust STEM workforce, the nation is on the brink of significant advancements in this vital industry.
NationPress
02/09/2025
Frequently Asked Questions
What is the India Semiconductor Mission?
The India Semiconductor Mission aims to strengthen the country's semiconductor industry through financial support and reforms.
How much financial support is expected for ISM 2.0?
Approximately $30 billion in fiscal assistance is anticipated from both central and state governments.
Why is India significant in the semiconductor market?
India produces around 1.1 million STEM graduates annually and employs a large percentage of semiconductor design engineers, making it a crucial player in the global market.
What did PM Modi say about the future of semiconductors in India?
PM Modi emphasized India's growing influence in the semiconductor market and the government's commitment to next-generation reforms to support this sector.
What investments have been made in the semiconductor sector since 2021?
Investments totaling $18 billion have been allocated to 10 semiconductor projects approved since 2021.
