[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"content-query-prgfbuHq5z":3},{"_path":4,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"title":8,"description":9,"date":10,"body":11,"_type":1428,"_id":1429,"_source":1430,"_file":1431,"_stem":1432,"_extension":1433},"\u002Fcurrent-affairs\u002Findia-semiconductor-mission","current-affairs",false,"","India Semiconductor Mission: Geopolitics of Chip Manufacturing","Comprehensive UPSC notes and analysis on India Semiconductor Mission: Geopolitics of Chip Manufacturing.","2026-08-11T10:32:07.207Z",{"type":12,"children":13,"toc":1389},"root",[14,22,28,48,52,59,66,78,83,93,99,104,173,179,184,238,241,247,266,274,280,323,329,334,364,370,437,440,446,458,464,469,512,520,526,531,537,548,561,564,570,576,581,587,599,605,617,649,655,660,696,699,705,710,716,735,741,746,779,787,793,798,804,809,815,820,823,829,997,1000,1006,1011,1081,1084,1090,1283,1286,1292,1298,1313,1319],{"type":15,"tag":16,"props":17,"children":19},"element","h1",{"id":18},"india-semiconductor-mission-geopolitics-of-chip-manufacturing",[20],{"type":21,"value":8},"text",{"type":15,"tag":23,"props":24,"children":25},"p",{},[26],{"type":21,"value":27},"Semiconductors—often referred to as the \"brains\" of modern electronics—have emerged as the defining technology of the 21st century. From smartphones and electric vehicles to guided missiles, medical devices, and artificial intelligence infrastructure, semiconductor chips underpin virtually every facet of modern industry and national security.",{"type":15,"tag":23,"props":29,"children":30},{},[31,33,39,41,46],{"type":21,"value":32},"Recognizing the strategic necessity of domestic chip production, the Government of India launched the ",{"type":15,"tag":34,"props":35,"children":36},"strong",{},[37],{"type":21,"value":38},"India Semiconductor Mission (ISM)",{"type":21,"value":40}," in December 2021 with an initial outlay of ",{"type":15,"tag":34,"props":42,"children":43},{},[44],{"type":21,"value":45},"₹76,000 crore (approximately $10 billion)",{"type":21,"value":47},". This initiative represents not merely an industrial policy, but a critical strategic intervention aimed at securing India’s technological sovereignty amidst shifting global weaponized interdependencies and weaponized supply chains.",{"type":15,"tag":49,"props":50,"children":51},"hr",{},[],{"type":15,"tag":53,"props":54,"children":56},"h2",{"id":55},"historical-background-and-context",[57],{"type":21,"value":58},"Historical Background and Context",{"type":15,"tag":60,"props":61,"children":63},"h3",{"id":62},"_1-indias-past-attempts-at-semiconductor-manufacturing",[64],{"type":21,"value":65},"1. India's Past Attempts at Semiconductor Manufacturing",{"type":15,"tag":23,"props":67,"children":68},{},[69,71,76],{"type":21,"value":70},"India’s quest for semiconductor self-reliance is not new. In 1984, the government established the ",{"type":15,"tag":34,"props":72,"children":73},{},[74],{"type":21,"value":75},"Semiconductor Complex Limited (SCL)",{"type":21,"value":77}," in Mohali, Punjab. At the time, SCL was technologically comparable to global peers in East Asia. However, a catastrophic fire in 1989, coupled with bureaucratic delays, lack of sustained capital expenditure, and the economic liberalization of 1991 (which prioritized software over hardware), led to India falling behind global semiconductor manufacturing curves.",{"type":15,"tag":23,"props":79,"children":80},{},[81],{"type":21,"value":82},"Subsequent policy attempts in 2006 and 2013 to attract global foundries failed due to rigid policy frameworks, high capital requirements, inadequate infrastructure support (uninterrupted power and ultrapure water), and lack of an integrated domestic ecosystem.",{"type":15,"tag":84,"props":85,"children":87},"pre",{"code":86},"       1984: SCL Mohali Established\n                 │\n                 ▼\n       1989: SCL Fire Incident \u002F Policy Stagnation\n                 │\n                 ▼\n       2006 & 2013: Unsuccessful Fab Bids\n                 │\n                 ▼\n       2021: Launch of India Semiconductor Mission (₹76,000 Cr)\n",[88],{"type":15,"tag":89,"props":90,"children":91},"code",{"__ignoreMap":7},[92],{"type":21,"value":86},{"type":15,"tag":60,"props":94,"children":96},{"id":95},"_2-the-global-supply-chain-landscape",[97],{"type":21,"value":98},"2. The Global Supply Chain Landscape",{"type":15,"tag":23,"props":100,"children":101},{},[102],{"type":21,"value":103},"The global semiconductor value chain is one of the most complex, specialized, and geographically concentrated supply chains in human history. No single nation possesses a complete end-to-end domestic supply chain:",{"type":15,"tag":105,"props":106,"children":107},"ul",{},[108,119,136,146,163],{"type":15,"tag":109,"props":110,"children":111},"li",{},[112,117],{"type":15,"tag":34,"props":113,"children":114},{},[115],{"type":21,"value":116},"Intellectual Property & Design:",{"type":21,"value":118}," Dominated by the United States (Cadence, Synopsys, Qualcomm, Nvidia) and Europe (ARM).",{"type":15,"tag":109,"props":120,"children":121},{},[122,127,129,134],{"type":15,"tag":34,"props":123,"children":124},{},[125],{"type":21,"value":126},"Photolithography Equipment:",{"type":21,"value":128}," Monopolized by the Netherlands (",{"type":15,"tag":34,"props":130,"children":131},{},[132],{"type":21,"value":133},"ASML",{"type":21,"value":135}," holds a near 100% monopoly on Extreme Ultraviolet Lithography - EUV equipment).",{"type":15,"tag":109,"props":137,"children":138},{},[139,144],{"type":15,"tag":34,"props":140,"children":141},{},[142],{"type":21,"value":143},"Raw Wafers & Chemicals:",{"type":21,"value":145}," Dominated by Japan (Shin-Etsu, SUMCO) and South Korea.",{"type":15,"tag":109,"props":147,"children":148},{},[149,154,156,161],{"type":15,"tag":34,"props":150,"children":151},{},[152],{"type":21,"value":153},"Front-end Fabrication (Foundries):",{"type":21,"value":155}," Heavily concentrated in Taiwan (",{"type":15,"tag":34,"props":157,"children":158},{},[159],{"type":21,"value":160},"TSMC",{"type":21,"value":162}," produces over 60% of global foundry chips and 90% of advanced sub-7nm chips) and South Korea (Samsung).",{"type":15,"tag":109,"props":164,"children":165},{},[166,171],{"type":15,"tag":34,"props":167,"children":168},{},[169],{"type":21,"value":170},"Back-end Assembly, Testing, and Packaging (ATP\u002FOSAT):",{"type":21,"value":172}," Concentrated in China, Taiwan, Malaysia, and Vietnam.",{"type":15,"tag":60,"props":174,"children":176},{"id":175},"_3-the-chip-war-and-geopolitical-catalysts",[177],{"type":21,"value":178},"3. The \"Chip War\" and Geopolitical Catalysts",{"type":15,"tag":23,"props":180,"children":181},{},[182],{"type":21,"value":183},"The vulnerabilities of this hyper-concentrated supply chain were exposed by three key developments:",{"type":15,"tag":185,"props":186,"children":187},"ol",{},[188,198,215],{"type":15,"tag":109,"props":189,"children":190},{},[191,196],{"type":15,"tag":34,"props":192,"children":193},{},[194],{"type":21,"value":195},"COVID-19 Pandemic:",{"type":21,"value":197}," Lockdowns disrupted global supply chains, causing severe shortages in automobile and consumer electronics sectors worldwide.",{"type":15,"tag":109,"props":199,"children":200},{},[201,206,208,213],{"type":15,"tag":34,"props":202,"children":203},{},[204],{"type":21,"value":205},"Cross-Strait Tensions:",{"type":21,"value":207}," Taiwan’s concentration of advanced fabrication creates a critical vulnerability. Any conflict across the Taiwan Strait could halt global technology production—a concept known as Taiwan’s ",{"type":15,"tag":34,"props":209,"children":210},{},[211],{"type":21,"value":212},"\"Silicon Shield\"",{"type":21,"value":214},".",{"type":15,"tag":109,"props":216,"children":217},{},[218,223,225,230,232,237],{"type":15,"tag":34,"props":219,"children":220},{},[221],{"type":21,"value":222},"US-China Tech War:",{"type":21,"value":224}," The United States introduced the ",{"type":15,"tag":34,"props":226,"children":227},{},[228],{"type":21,"value":229},"CHIPS and Science Act (2022)",{"type":21,"value":231}," and sweeping export controls to deny China access to advanced computing chips, EDA software, and EUV lithography tools. China responded by expanding its dominance in legacy\u002Fmature nodes (28nm and above) and restricting critical raw materials like ",{"type":15,"tag":34,"props":233,"children":234},{},[235],{"type":21,"value":236},"Gallium and Germanium",{"type":21,"value":214},{"type":15,"tag":49,"props":239,"children":240},{},[],{"type":15,"tag":53,"props":242,"children":244},{"id":243},"key-features-and-objectives-of-the-india-semiconductor-mission-ism",[245],{"type":21,"value":246},"Key Features and Objectives of the India Semiconductor Mission (ISM)",{"type":15,"tag":23,"props":248,"children":249},{},[250,252,257,259,264],{"type":21,"value":251},"Launched under the aegis of the ",{"type":15,"tag":34,"props":253,"children":254},{},[255],{"type":21,"value":256},"Ministry of Electronics and Information Technology (MeitY)",{"type":21,"value":258}," within the ",{"type":15,"tag":34,"props":260,"children":261},{},[262],{"type":21,"value":263},"Digital India Corporation",{"type":21,"value":265},", the ISM acts as the nodal agency for driving India's semiconductor and display manufacturing ecosystem.",{"type":15,"tag":84,"props":267,"children":269},{"code":268},"                      ┌──────────────────────────────────────────────┐\n                      │    India Semiconductor Mission (ISM)         │\n                      │          (Outlay: ₹76,000 Crore)             │\n                      └──────────────────────┬───────────────────────┘\n                                             │\n      ┌──────────────────────┬───────────────┴───────────────┬──────────────────────┐\n      ▼                      ▼                               ▼                      ▼\n┌───────────┐         ┌────────────┐                  ┌────────────┐         ┌────────────┐\n│ Semiconductor│      │ Display    │                  │ Compound   │         │ Design-    │\n│ Fabs      │         │ Fabs       │                  │ Semi \u002F     │         │ Linked     │\n│ Scheme    │         │ Scheme     │                  │ ATMP\u002FOSAT  │         │ Incentive  │\n└───────────┘         └────────────┘                  └────────────┘         └────────────┘\n",[270],{"type":15,"tag":89,"props":271,"children":272},{"__ignoreMap":7},[273],{"type":21,"value":268},{"type":15,"tag":60,"props":275,"children":277},{"id":276},"_1-four-key-components-of-the-scheme",[278],{"type":21,"value":279},"1. Four Key Components of the Scheme",{"type":15,"tag":185,"props":281,"children":282},{},[283,293,303,313],{"type":15,"tag":109,"props":284,"children":285},{},[286,291],{"type":15,"tag":34,"props":287,"children":288},{},[289],{"type":21,"value":290},"Scheme for Setting Up Semiconductor Fabs in India:",{"type":21,"value":292}," Offers fiscal support to eligible applicants setting up Silicon-based semiconductor fabrication plants.",{"type":15,"tag":109,"props":294,"children":295},{},[296,301],{"type":15,"tag":34,"props":297,"children":298},{},[299],{"type":21,"value":300},"Scheme for Setting Up Display Fabs in India:",{"type":21,"value":302}," Supports large-scale investments in TFT-LCD or AMOLED-based display panel manufacturing.",{"type":15,"tag":109,"props":304,"children":305},{},[306,311],{"type":15,"tag":34,"props":307,"children":308},{},[309],{"type":21,"value":310},"Scheme for Compound Semiconductors \u002F Silicon Photonics \u002F Sensors Fabs and ATMP\u002FOSAT:",{"type":21,"value":312}," Supports specialized units for Assembly, Testing, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) facilities.",{"type":15,"tag":109,"props":314,"children":315},{},[316,321],{"type":15,"tag":34,"props":317,"children":318},{},[319],{"type":21,"value":320},"Design Linked Incentive (DLI) Scheme:",{"type":21,"value":322}," Provides financial incentives and infrastructure support to domestic startups and MSMEs across various stages of chip design (EDA tool access, IP core creation, and prototype deployment).",{"type":15,"tag":60,"props":324,"children":326},{"id":325},"_2-modified-financial-structure-2022-enhancement",[327],{"type":21,"value":328},"2. Modified Financial Structure (2022 Enhancement)",{"type":15,"tag":23,"props":330,"children":331},{},[332],{"type":21,"value":333},"To increase global competitiveness, the Cabinet approved modifications to the scheme in September 2022:",{"type":15,"tag":105,"props":335,"children":336},{},[337,354],{"type":15,"tag":109,"props":338,"children":339},{},[340,345,347,352],{"type":15,"tag":34,"props":341,"children":342},{},[343],{"type":21,"value":344},"Uniform 50% Fiscal Support:",{"type":21,"value":346}," Financial assistance of ",{"type":15,"tag":34,"props":348,"children":349},{},[350],{"type":21,"value":351},"50% of the project cost",{"type":21,"value":353}," on a pari-passu basis across all tech nodes for Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors, Discrete Semiconductors, Silicon Photonics, Sensors, ATMP, and OSAT facilities.",{"type":15,"tag":109,"props":355,"children":356},{},[357,362],{"type":15,"tag":34,"props":358,"children":359},{},[360],{"type":21,"value":361},"Infrastructure Support:",{"type":21,"value":363}," Coordination with state governments to provide land, uninterrupted power, ultrapure water, and logistics clusters.",{"type":15,"tag":60,"props":365,"children":367},{"id":366},"_3-key-projects-approved-under-ism",[368],{"type":21,"value":369},"3. Key Projects Approved Under ISM",{"type":15,"tag":105,"props":371,"children":372},{},[373,390,406,422],{"type":15,"tag":109,"props":374,"children":375},{},[376,381,383,388],{"type":15,"tag":34,"props":377,"children":378},{},[379],{"type":21,"value":380},"Tata Electronics - Powerchip Semiconductor Manufacturing Corp (PSMC) Partnership:",{"type":21,"value":382}," India's first commercial megafab in ",{"type":15,"tag":34,"props":384,"children":385},{},[386],{"type":21,"value":387},"Dholera, Gujarat",{"type":21,"value":389}," (focusing on mature nodes like 28nm, 40nm, 55nm, 90nm).",{"type":15,"tag":109,"props":391,"children":392},{},[393,398,400,405],{"type":15,"tag":34,"props":394,"children":395},{},[396],{"type":21,"value":397},"Micron Technology OSAT Facility:",{"type":21,"value":399}," Semiconductor testing and packaging plant in ",{"type":15,"tag":34,"props":401,"children":402},{},[403],{"type":21,"value":404},"Sanand, Gujarat",{"type":21,"value":214},{"type":15,"tag":109,"props":407,"children":408},{},[409,414,416,421],{"type":15,"tag":34,"props":410,"children":411},{},[412],{"type":21,"value":413},"Tata OSAT Facility:",{"type":21,"value":415}," Advanced packaging facility in ",{"type":15,"tag":34,"props":417,"children":418},{},[419],{"type":21,"value":420},"Morigaon, Assam",{"type":21,"value":214},{"type":15,"tag":109,"props":423,"children":424},{},[425,430,432,436],{"type":15,"tag":34,"props":426,"children":427},{},[428],{"type":21,"value":429},"CG Power - Renesas Partnership:",{"type":21,"value":431}," OSAT facility in ",{"type":15,"tag":34,"props":433,"children":434},{},[435],{"type":21,"value":404},{"type":21,"value":214},{"type":15,"tag":49,"props":438,"children":439},{},[],{"type":15,"tag":53,"props":441,"children":443},{"id":442},"geopolitics-of-chip-manufacturing-strategic-alignments",[444],{"type":21,"value":445},"Geopolitics of Chip Manufacturing: Strategic Alignments",{"type":15,"tag":23,"props":447,"children":448},{},[449,451,456],{"type":21,"value":450},"The semiconductor industry has transitioned from a pure market-driven globalized model to a ",{"type":15,"tag":34,"props":452,"children":453},{},[454],{"type":21,"value":455},"geopolitically driven, tech-nationalist ecosystem",{"type":21,"value":457},". India’s ISM is strategically positioned within this shifting dynamic:",{"type":15,"tag":60,"props":459,"children":461},{"id":460},"_1-silicon-diplomacy-and-multilateral-partnerships",[462],{"type":21,"value":463},"1. Silicon Diplomacy and Multilateral Partnerships",{"type":15,"tag":23,"props":465,"children":466},{},[467],{"type":21,"value":468},"India is leveraging bilateral and multilateral frameworks to integrate into global semiconductor value chains:",{"type":15,"tag":105,"props":470,"children":471},{},[472,482,492,502],{"type":15,"tag":109,"props":473,"children":474},{},[475,480],{"type":15,"tag":34,"props":476,"children":477},{},[478],{"type":21,"value":479},"US-India Initiative on Critical and Emerging Technology (iCET):",{"type":21,"value":481}," Focuses on building resilient semiconductor supply chains, supporting joint ventures, and promoting workforce development.",{"type":15,"tag":109,"props":483,"children":484},{},[485,490],{"type":15,"tag":34,"props":486,"children":487},{},[488],{"type":21,"value":489},"Quad Semiconductor Supply Chain Initiative:",{"type":21,"value":491}," Maps capacities, identifies vulnerabilities, and strengthens supply chain security among Quad partners (US, India, Japan, Australia).",{"type":15,"tag":109,"props":493,"children":494},{},[495,500],{"type":15,"tag":34,"props":496,"children":497},{},[498],{"type":21,"value":499},"India-Japan Semiconductor Partnership:",{"type":21,"value":501}," Signed in 2023 for joint research, ecosystem development, and supply chain resilience.",{"type":15,"tag":109,"props":503,"children":504},{},[505,510],{"type":15,"tag":34,"props":506,"children":507},{},[508],{"type":21,"value":509},"India-EU Trade and Technology Council (TTC):",{"type":21,"value":511}," Focuses on deep-tech collaboration and semiconductor research integration.",{"type":15,"tag":84,"props":513,"children":515},{"code":514},"                          ┌──────────────────────────┐\n                          │   Silicon Diplomacy      │\n                          └────────────┬─────────────┘\n                                       │\n         ┌───────────────────┬─────────┴─────────┬───────────────────┐\n         ▼                   ▼                   ▼                   ▼\n    US-India iCET        Quad Initiative     India-Japan MOU     India-EU TTC\n  (Resilient Chains)   (Vulnerability Map)    (R&D \u002F Supply)    (Deep Tech & Research)\n",[516],{"type":15,"tag":89,"props":517,"children":518},{"__ignoreMap":7},[519],{"type":21,"value":514},{"type":15,"tag":60,"props":521,"children":523},{"id":522},"_2-de-risking-and-the-china-plus-one-strategy",[524],{"type":21,"value":525},"2. De-Risking and the \"China Plus One\" Strategy",{"type":15,"tag":23,"props":527,"children":528},{},[529],{"type":21,"value":530},"Global tech firms are seeking to diversify beyond China and Taiwan to manage geopolitical exposure. India presents a compelling alternative due to its vast internal market, large engineering workforce, and stable political environment. By de-risking assembly and packaging away from East Asia, global firms find a strategic partner in India.",{"type":15,"tag":60,"props":532,"children":534},{"id":533},"_3-strategy-of-mature-nodes-vs-cutting-edge-nodes",[535],{"type":21,"value":536},"3. Strategy of Mature Nodes vs. Cutting-Edge Nodes",{"type":15,"tag":23,"props":538,"children":539},{},[540,542,547],{"type":21,"value":541},"While global headlines focus on sub-3nm nodes powering advanced AI GPUs, ",{"type":15,"tag":34,"props":543,"children":544},{},[545],{"type":21,"value":546},"over 70% of industrial, automotive, telecom, and defense applications rely on mature nodes (28nm to 180nm)",{"type":21,"value":214},{"type":15,"tag":105,"props":549,"children":550},{},[551,556],{"type":15,"tag":109,"props":552,"children":553},{},[554],{"type":21,"value":555},"ISM’s primary strategy focuses on capturing mature node fabrication first.",{"type":15,"tag":109,"props":557,"children":558},{},[559],{"type":21,"value":560},"This strategy lowers capital barriers, builds domestic manufacturing experience, and serves critical local demand in automotive, IoT, and power electronics sectors before attempting leading-edge nodes.",{"type":15,"tag":49,"props":562,"children":563},{},[],{"type":15,"tag":53,"props":565,"children":567},{"id":566},"significance-for-india",[568],{"type":21,"value":569},"Significance for India",{"type":15,"tag":60,"props":571,"children":573},{"id":572},"_1-national-security-and-defense-autonomy",[574],{"type":21,"value":575},"1. National Security and Defense Autonomy",{"type":15,"tag":23,"props":577,"children":578},{},[579],{"type":21,"value":580},"Modern defense equipment—radar systems, electronic warfare suits, secure satellite communications, and precision missiles—depends heavily on specialized microelectronics. Relying on imported chips leaves critical national security systems vulnerable to supply disruptions, backdoor malware, and foreign espionage during conflict. Domestic fabrication guarantees technological integrity and strategic autonomy.",{"type":15,"tag":60,"props":582,"children":584},{"id":583},"_2-economic-resilience-and-import-substitution",[585],{"type":21,"value":586},"2. Economic Resilience and Import Substitution",{"type":15,"tag":23,"props":588,"children":589},{},[590,592,597],{"type":21,"value":591},"India's domestic demand for electronics is projected to surpass ",{"type":15,"tag":34,"props":593,"children":594},{},[595],{"type":21,"value":596},"$400 billion by 2030",{"type":21,"value":598},". Without a domestic semiconductor base, India's chip import bill could rival or exceed its crude oil import bill, worsening the Current Account Deficit (CAD). Domestic manufacturing creates import-substitution effects and reduces foreign exchange outflows.",{"type":15,"tag":60,"props":600,"children":602},{"id":601},"_3-leveraging-existing-strengths-in-chip-design",[603],{"type":21,"value":604},"3. Leveraging Existing Strengths in Chip Design",{"type":15,"tag":23,"props":606,"children":607},{},[608,610,615],{"type":21,"value":609},"India is already a global powerhouse in ",{"type":15,"tag":34,"props":611,"children":612},{},[613],{"type":21,"value":614},"fabless chip design",{"type":21,"value":616},":",{"type":15,"tag":105,"props":618,"children":619},{},[620,632,637],{"type":15,"tag":109,"props":621,"children":622},{},[623,625,630],{"type":21,"value":624},"Over ",{"type":15,"tag":34,"props":626,"children":627},{},[628],{"type":21,"value":629},"20% of the world's semiconductor design engineers",{"type":21,"value":631}," are based in India (Bangalore, Hyderabad, Noida, Pune).",{"type":15,"tag":109,"props":633,"children":634},{},[635],{"type":21,"value":636},"Major global chip design firms (Qualcomm, Intel, Nvidia, Texas Instruments, AMD) operate major R&D centers in India.",{"type":15,"tag":109,"props":638,"children":639},{},[640,642,647],{"type":21,"value":641},"ISM's ",{"type":15,"tag":34,"props":643,"children":644},{},[645],{"type":21,"value":646},"Design Linked Incentive (DLI)",{"type":21,"value":648}," aims to transform India from a design service provider for foreign firms into a creator of homegrown Intellectual Property (IP).",{"type":15,"tag":60,"props":650,"children":652},{"id":651},"_4-downstream-industrial-multiplier-effect",[653],{"type":21,"value":654},"4. 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