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QUESTION 16
GS3
15 marks

India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India? Mention the salient features of the India Semiconductor Mission.

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11 min
250 words

What the examiner wants

Identify the challenges facing India's semiconductor industry and set out the main features of the India Semiconductor Mission.

DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.

Demand-wise check

  1. 1Challenges: huge capital cost, ultra-pure water and stable power needs, lack of fab ecosystem and suppliers (chemicals, gases), skilled workforce, technology access controlled by few firms and countries, long gestation, global overcapacity cycles≈65 words
  2. 2ISM (2021, ₹76,000 crore): 50% fiscal support for fabs, display fabs, ATMP/OSAT units, compound semiconductors; Design Linked Incentive scheme; Semicon India programme; state top-ups≈65 words
  3. 3Progress: Tata–PSMC fab at Dholera, Micron ATMP at Sanand, CG Power and Kaynes OSAT units; first 'Made in India' chips in 2025≈65 words

Open in about 30 words and close in about 30.

Answer plan

Why chips matterChallengesISM featuresProgressGapsConclusion

Where marks usually go

  • Not naming ISM's components (fab, OSAT, DLI)
  • Listing challenges in general without India-specific ones (water, power, suppliers)

Draw this

  • Value chain: design → fab → ATMP/OSAT, marking India's projects at each stage

Value addition

  • FactThe Semicon India programme was approved in December 2021 with an outlay of ₹76,000 crore.Ministry of Electronics and IT
  • ProjectTata Electronics with PSMC (Taiwan) is building India's first commercial fab at Dholera, Gujarat.India Semiconductor Mission

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