Q5.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.

India's ambition to emerge as a global semiconductor manufacturing hub is pivotal for its digital economy, strategic autonomy, and national security in an increasingly technology-driven world.

Key Challenges

• High capital investment, long gestation periods, and significant financial risks are inherent in setting up fabrication units (fabs).
• Lack of a mature domestic ecosystem spanning design, fabrication, and ATMP (Assembly, Testing, Marking, and Packaging) hinders integrated growth.
• Acute shortage of highly skilled talent, specialized R&D capabilities, and an experienced workforce critical for advanced manufacturing.
• Infrastructure gaps include consistent power supply, ultra-pure water, and clean room facilities, compounded by complex global supply chains.

ISM's Strategic Pillars

• Offers significant fiscal incentives, covering up to 50% of the project cost, for establishing fabs, display fabs, and ATMP units.
• Aims to build a comprehensive semiconductor ecosystem, fostering indigenous R&D and innovation across the value chain.
• Focuses on developing a skilled talent pool through academic and industry collaborations to meet future demands.
• Seeks to attract global players and facilitate strategic partnerships to integrate India into the global semiconductor supply chain.

The India Semiconductor Mission, by addressing these multifaceted challenges through targeted incentives and ecosystem building, is instrumental in realizing India's vision of becoming a resilient and globally competitive semiconductor manufacturing hub.