What Are the Latest Updates on India's Semiconductor Projects?
Synopsis
Key Takeaways
New Delhi, Feb 4 (NationPress) The Indian government has sanctioned 10 semiconductor projects that are at various levels of execution, with projected investments amounting to approximately Rs. 1.6 lakh crore. Four of these projects have commenced production, as stated by Union Minister of State for Electronics and Information Technology Jitin Prasada in a formal reply in Lok Sabha on Wednesday.
The sanctioned initiatives comprise two fabs and eight packaging units, including CMOS (silicon) fabs, a silicon carbide fab, as well as advanced and memory packaging units. Additionally, 24 chip-design projects have been nurtured through startups, with 16 achieving tapeouts and 13 securing venture capital funding, according to an official report.
The Ministry of Electronics & IT emphasized that 350 universities have gained access to electronic design automation (EDA) tools utilized by 65,000 engineers.
The government initiated the Semicon India Programme with a total budget of Rs 76,000 crore to establish a comprehensive semiconductor and display manufacturing ecosystem, covering everything from design and fabrication to assembly, testing, packaging, and module manufacturing.
Furthermore, the government referenced estimates from the National Association of Software and Services Companies (NASSCOM), which indicate that the IT sector's performance has seen improvements over five years, with exports rising from $152 billion to $224.4 billion from 2020-21 to 2024-25.
The overall revenue increased from $196 billion to $283 billion during the same timeframe, as reported by the ministry.
Details of the ten semiconductor manufacturing projects have also been disclosed.
A project based in Gujarat will facilitate assembly and testing operations for both DRAM and NAND products, catering to demands from both domestic and international markets, with a production capacity of approximately 14 million units per week.
Analysts forecast that the introduction of India Semiconductor Mission 2.0 will considerably enhance the nation’s technology ecosystem by deepening the integration of hardware and software capabilities, thereby positioning India as a leader in next-generation digital infrastructure.
The government's Rs 7,280 crore initiative for Sintered Rare Earth Permanent Magnets (REPM) is anticipated to serve as a catalyst for India's broader semiconductor manufacturing goals by ensuring secure access to strategic materials.
aar/pk