Semiconductor unit under India Semiconductor Mission

The Union Cabinet recently approved a proposal to setup a semiconductor unit in Sanand, Gujarat, under the India Semiconductor Mission (ISM).

Current scenario of Semiconductor industry in India:

• Semiconductors are crucial for modern technology, from smartphones to medical devices and vehicles.
• India’s consumption of electronic devices is rising sharply, but the majority of this demand is met through imports.
• In 2019, India exported semiconductors worth $0.33 billion while importing $4.65 billion.
• The global semiconductor value chain is diversifying due to pandemic disruptions and rising labor costs, with major production in South Korea, Taiwan, China, the U.S., and Japan.
• India aims to mitigate these risks and become a key player in the semiconductor sector, become one of the world’s largest semiconductor hubs within the next five years.
• The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, launched in 2021 with a Rs 76,000 crore budget.
• By 2026, India’s semiconductor market is projected to reach $64 billion, nearly triple its size in 2019.

India Semiconductor Mission (ISM):

• ISM is an independent division within the Digital India Corporation, acting as the nodal agency for the Semicon India Programme.
• It is spearheading efforts to develop a robust semiconductor ecosystem in India.
• Projects worth Rs 1.25 lakh crore were inaugurated, including semiconductor fabs in Dholera, Gujarat, and Morigaon, Assam, while another unit would be forms in Sanand, Gujarat.
• These projects are expected to create numerous direct and indirect jobs.
• The approved units will have a combined capacity of approximately 7 crore chips per day.
• The total investment in these projects is about Rs 1.5 lakh crore.

Ref: Source

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