India Semiconductor Mission 2.0: Boosting Ancillary Ecosystem and Global Competitiveness

India is set to launch a revamped version of its semiconductor initiative, with the India Semiconductor Mission 2.0 focusing on developing a robust ancillary ecosystem around semiconductor plants. This strategic move aims to enhance the country's competitiveness in the global semiconductor market and create opportunities for small and medium enterprises (SMEs).

Emphasis on Ancillary Industries

The new mission will prioritize the development of supporting industries crucial for semiconductor manufacturing. These include:

• Gas suppliers
• Chemical suppliers
• Other essential ancillary services

This approach is expected to significantly benefit SMEs, creating a more comprehensive and self-reliant semiconductor ecosystem in India.

Financial Structure and Incentives

S Krishnan, Secretary of the Ministry of Electronics and IT, revealed that discussions are ongoing with the Finance Ministry regarding the financial structure of the mission. While the final scheme size remains undecided, the enhanced program is set to offer several key benefits:

• Support for capital equipment and materials
• Continuation of fab and OSAT (Outsourced Semiconductor Assembly and Test) incentives
• Targeted cost competitiveness of 15-30% compared to global peers

Progress and Future Outlook

IT Minister Ashwini Vaishnaw shared some promising updates on the semiconductor front:

• Pilot lines for three chip projects are nearing completion
• India-made chips are expected to hit the market by 2025
• Land has been identified for the HCL-Foxconn joint venture fab
• A modernization package for Semiconductor Laboratory will be presented to the Cabinet

India Deeptech Alliance: Boosting Innovation

In a related development, a $1 billion deeptech fund called India Deeptech Alliance has been announced. This fund will prioritize investments in key sectors:

• Clean energy
• Semiconductors
• Biotechnology
• Quantum computing
• Space technology

Conclusion

The India Semiconductor Mission 2.0 represents a significant step towards establishing India as a major player in the global semiconductor industry. By focusing on developing a comprehensive ecosystem, supporting SMEs, and offering competitive incentives, India aims to attract investments and foster innovation in this critical sector. The success of this initiative could have far-reaching implications for India's technological self-reliance and its position in the global supply chain.