Syllabus

GS-3: Awareness in the fields of IT, Space, Computer, robotics, etc. Achievements of Indians in science & technology; indigenization of technology and developing new technology.

Context: 

Recently, Industry estimates cited India's semiconductor market is projected to grow from $38 billion in 2023 to $110 billion by 2030. 

About Semiconductor 

• A semiconductor is a material whose electrical conductivity lies between that of conductors and insulators, allowing it to act as either under different conditions
• These unique properties make semiconductors ideal for use in tiny electronic components that function as the brains of modern devices.
• Semiconductors are used to create electronic chips that control how devices function.
• Each chip contains millions or even billions of tiny switches called transistors that control electrical signals, similar to how brain cells work.
• Chips also contain other components such as resistors, capacitors, and wiring to help store, process, and transfer information.

Global Scenario of Semiconductor

• Currently, Taiwan, South Korea, Japan, China, and the United States dominate the global semiconductor industry.
• Taiwan alone produces over 60% of the world’s semiconductors and nearly 90% of the most advanced chips.
• Heavy dependence on a single region like Taiwan creates vulnerabilities in global supply chains due to risks like natural disasters, pandemics, and geopolitical tensions.
• India is emerging as a reliable and strategic partner in the effort to diversify global semiconductor supply chains.

India’s semiconductor market

• India’s entry into semiconductor manufacturing supports its ambition of becoming a global electronics hub and ensuring technological self-reliance.

• India is transitioning from a semiconductor-consuming nation to a global manufacturing hub, aiming to become a key player in the trillion-dollar global semiconductor value chain.

• India currently meets less than 9% of its semiconductor demand domestically and plans to increase this to 17% by 2026.

• India has the capacity to emerge as a key contributor to the 3 primary pillars of the semiconductor manufacturing supply chain

• Equipment: Leveraging a strong base of MSMEs to produce components for semiconductor equipment.
• Materials: India is a rich source of chemicals, minerals and gases which can be utilized by semiconductor supply chain companies.
• Services: R&D, Logistics and supply chain, with major talent in AI, big data, cloud computing and IoT.

• The global push for supply chain diversification underscores the strategic importance of India’s projected $100–110 billion semiconductor market by 2030.

India Semiconductor Mission (ISM)

• ISM was approved by the Union Cabinet in December 2021.
• The programme aims to provide financial support for investments in semiconductor fabrication, display manufacturing & chip design to strengthen India's integration into global electronics value chains.

Schemes under ISM: 

• Semiconductor Fabs Scheme
• Display Fabs Scheme.
• Compound Semiconductors and ATMP/OSAT Scheme
• Design Linked Incentive (DLI) Scheme

• ISM offers various skill development programs, training workshops, and certification courses to individuals interested in enhancing their skills and knowledge in the semiconductor field. 

• SEMICON India programme: India plays a catalytic role in advancing ISM’s goals by enabling cross-border collaborations, promoting research commercialization, enhancing skill development, and showcasing India’s growing potential in the global semiconductor value chain.

• The platform brings together global industry leaders, policymakers, academia, and startups to foster investment, dialogue, and strategic partnerships.

Source:

https://www.pib.gov.in/PressNoteDetails.aspx?id=154968&NoteId=154968&ModuleId=3#:~:text=As%20per%20industry%20estimates%2C%20the,%2D110%24%20Bn%20by%202030.&text=India%20Semiconductor%20Mission%20was%20approved%20by%20the%20Union%20Cabinet%20in%20December%202021. https://www.businesstoday.in/technology/news/story/indias-semiconductor-market-set-to-triple-by-2030-reach-110-billion-487633-2025-08-04 https://www.techinasia.com/news/indias-chip-market-set-to-double-hits-100b-by-2030 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2148393