The Ministry of Electronics & IT (MeitY) is considering increasing the funds for the Indian Semiconductor Mission (ISM) scheme, currently set at ₹76,000 crore, due to its growing popularity globally. The Secretary of MeitY, S Krishnan, mentioned the possibility of raising funds when the ISM scheme gets exhausted, especially if there’s a need for more fabs (semiconductor fabrication units) in the country.
The government aims to have 2-3 more semiconductor fabrication units in the next 2 to 3 years. Krishnan highlighted that semiconductor fabrication is capital-intensive and requires patient capital, making government involvement essential. The ISM scheme, launched in 2021, supports semiconductor manufacturing, packaging, and design units, providing fiscal support of up to 50% of the project cost to approved applicants.
Recent approvals include Tata’s two semiconductor plants in Gujarat with an investment of ₹91,000 crore and ₹27,000 crore, respectively. Additionally, Micron Technology, CG Power, and others have plans for semiconductor facilities in India. The country’s focus on developing capabilities in chip fabrication and advanced packaging technologies is expected to reduce the dominance of China and Taiwan in the semiconductor industry.
The government anticipates that these units will create around 20,000 direct job opportunities and nearly 60,000 indirect jobs in advanced technology areas.
