India Semiconductor Mission - Guide 2025

The India Semiconductor Mission (ISM) was launched in 2021 during the first SEMICON INDIA event with a total budget of Rs 76,000 crore. ISM can manage its own operations as well as finances. Its goal is to make long-term strategies for semiconductor and display manufacturing, as well as the semiconductor design ecosystem, and support the mission of Atmanirbhar Bharat.

Government Scheme for Setting Up Semiconductor Fabs in India:

If the company fulfills all the required documents, the government gives some support. Its goal is to attract big investments to set up big semiconductors.

Scheme for setting TFT LCD/AMOLED display manufacturing :

The government facilitates companies through various schemes; here, companies get financial support for establishing display fabrication units in India.

Scheme for setting up Compound Semiconductors, Silicon Photonics, sensor fabs, and 

Semiconductor ATMP/OSAT facilities in India:

The Scheme provides 30% financial support on capital expenses to eligible applicants for setting up facilities in India that manufacture compound semiconductors, silicon photonics (SiPh), sensors (including MEMS), and semiconductor ATMP/OSAT facilities in India.

About the DLI Scheme:

The DLI Scheme gives financial support and encourages companies to semiconductor designs such as integrated circuits (ICs), chipsets, systems on chips (SoCs), systems, and IP cores. The scheme is only for 5 years. This scheme is managed by CDAC and helps companies to deal with any type of problem.

Significance:

To make the India Semiconductor Mission (ISM) successful, the government has launched many initiatives and provided them. Let's see them:

Semiconductors are a very important part of all the technology, whether it's smartphones or any medical equipment. Although India is one of the important semiconductor producers, it produces less than 2% of the global production.

Challenges come with ISM

Technological Know-How Even with some progress, India is still behind in deep-tech skills for advanced node manufacturing (below 10nm). To catch up, the country requires long-term R&D investments and knowledge transfer from the players.

High Capital Expenditure - Building a semiconductor is very expensive, with minimum setup costs of around $20 billion each. Although government support is very important, it's also very difficult to attract global investors.

Global Competition - India is not the only country that aims to lead in semiconductors; the U.S. also wants to become a global leader for that, they are also investing billions, so to run in the market, it's important to do continuous innovation.

Future of the Semiconductor Industry in India

The Indian semiconductor industry has a promising future due to government initiatives, private investments, and growing demand for advanced tech. According to KPMG, it is expected to reach more than $64 billion by 2026. This growth is mainly driven by the rising use of AI, IoT, and 5G, which are transforming technologies like healthcare and automotive. Know more abodut Semiconductor Industry in India.

Upcoming trends and opportunities

Advanced Manufacturing: By focusing on producing chips that are smaller than 10 nm, India is working closely with global leaders like Taiwan and South Korea.

Green Semiconductors: Investments in energy-efficient and sustainable chip-making methods will help India lead in eco-friendly technology.

Global Talent Hub: India has a number of skilled engineers, along with programs like “Chip-to-Market,” which makes the country a preferred destination for R&D activities.

India's Vision in the Upcoming Years

Looking forward, India’s semiconductor industry wants more than just a manufacturing center; it wants to become a hub of innovation itself. By 2030, the government wants to set up more than 10 semiconductor plants.

Conclusion - India Semiconductor Mission

The semiconductor journey is a turning point for the country due to its growing demand and strong government support. The country aims to become an important player in the semiconductor industry. There are also some challenges that the country has to face, but due to the country's willpower and skilled employment, they will reach their goals in the upcoming years.

Also read - India-based Mindgrove Technologies: Story of Building A Multi-Million Dollar Semiconductor Startup.