Why in the News?
The Prime Minister inaugurated and laid foundation stones for ₹18,000 crore worth of projects in Andhra Pradesh, including a semiconductor project at Tarluvada (Visakhapatnam), to strengthen India’s semiconductor ecosystem and reduce import dependence.
Key Components
- Semiconductor Project (Tarluvada): Boost domestic chip manufacturing and employment.
- National Highways: Four-lane NH-365BG sections and Tadipatri Bypass (NH-67).
- Power Transmission: Integrate renewable energy from Kurnool and Ananthapuram into the National Grid.
- Alluri Sitarama Raju International Airport: Improve connectivity for North Andhra, South Odisha and Chhattisgarh.
Significance
- Reduces dependence on imported semiconductors.
- Diversifies India’s semiconductor ecosystem beyond Gujarat.
- Supports Make in India, Digital India and electronics manufacturing.
- Strengthens supply chain resilience and national technological security.
- Renewable energy integration ensures reliable power for semiconductor fabrication.
Challenges
- Very high capital investment.
- Limited domestic ecosystem for semiconductor equipment, chemicals and skilled manpower.
- Long gestation period before commercial production.
- Requirement of uninterrupted power and ultra-pure water.
Semiconductor Value Chain
- Chip Design
- Wafer Fabrication (Fab)
- Assembly, Packaging and Testing (OSAT/ATMP)
- Integration into electronic products
India’s Semiconductor Ecosystem
- Dholera (Gujarat): India’s first commercial semiconductor fab.
- Morigaon (Assam): Tata Semiconductor Assembly and Test (TSAT) facility.
- Sanand (Gujarat): OSAT facility by CG Power-Renesas partnership.
- Tarluvada (Andhra Pradesh): Expands the semiconductor ecosystem to southern India.
- Importance of Semiconductors: Smartphones, Artificial Intelligence, Electric Vehicles, Defence systems, Telecommunications (5G/6G), Medical devices, and Consumer electronics
India Semiconductor Mission (ISM)
- Launched in 2021 under MeitY.
- Financial outlay of ₹76,000 crore.
- Supports: Semiconductor Fabs, Display Fabs, Compound Semiconductor & Silicon Photonics, Sensors, and OSAT/ATMP facilities
- Objective: Develop an end-to-end semiconductor manufacturing ecosystem in India.
Note:
- OSAT: Outsourced Semiconductor Assembly and Test; packages and tests semiconductor chips.
- ATMP: Assembly, Testing, Marking and Packaging of semiconductor devices.
- Fab: Manufacturing facility where silicon wafers are processed into integrated circuits.
[2025, GS3, 15.0 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.”
[2026] Which one of the following pairs of semiconductor plants in India and their locations is not correctly matched?
[A] CG Power and Industrial Solutions Pvt. Ltd. in partnership with Renesas Electronics and STARS Microelectronics: Gujarat
[B] Tata Semiconductor Assembly and Test Pvt. Ltd: Assam
[C] HCL-Foxconn Joint Venture India Chip Ltd: Madhya Pradesh
[D] SicSem Pvt. Ltd: Odisha