Industry working with govt on next phase of India Semiconductor Mission; focus on supply chain, talent, IP: IESA
By Kaushal Verma, New Delhi, June 11
The semiconductor industry is working closely with the government and providing inputs for the next phase of the India Semiconductor Mission ISM 2.0, with a focus on supply-chain expansion, talent development, intellectual property creation and product innovation, Navin Bishnoi, Chairperson of the India Electronics and Semiconductor Association toldtoday.
"We are working very closely with the government on this to at least give them guidance and feedback on what could be the next ISM 2.0 version, how to expand the supply chain. The government has taken note of it to include everyone together, focus some fundings on both the talent part of it as well as on IP and product creation part of it because finally that's what we'll sell," Bishnoi told ANI on the sidelines of the fifth edition of India Global Innovation Connect IGIC event.
He said the broader objective is to create an ecosystem in which products designed and manufactured in India can also be packaged, assembled and sold both in domestic and global markets.
"To create an ecosystem that whatever we manufacture, whatever we produce, whatever we design can be created, packaged, assembled and be sold in India and the world. I think creating the bigger ecosystem from the basic materials to the final end products is what the ask is and I believe that's the vision behind the ISM 2.0 which we are all looking forward for," he said.
Bishnoi said India's semiconductor ecosystem has evolved beyond a design-led approach and is now focused on bringing manufacturing capabilities into the ecosystem as well.
"We have moved forward from the ISM 1.0 to create an ecosystem where it is not just design but design plus manufacturing come together," he said.
According to Bishnoi, the next stage of growth requires strengthening the entire semiconductor value chain, including the supply chain that supports chip manufacturing. He said this extends beyond chips and electronics to encompass critical inputs such as minerals, chemicals, gases, water, air and other components required to establish and operate semiconductor facilities.
He also highlighted the need to develop talent across the ecosystem. According to him, the industry's requirements go beyond chip designers and include talent emerging from engineering colleges, Industrial Training Institutes (ITIs) and diploma programmes.
He added that skilling efforts must also take into account the increasing role of artificial intelligence (AI) in day-to-day operations.
Bishnoi said another key challenge is ensuring that the sector remains sustainable beyond government incentives. He noted that long-term success would depend on creating a viable buyer-seller market and a commercialisation ecosystem capable of supporting sustained growth.
On raw material availability, he said India would continue to rely on global partnerships for several inputs critical to semiconductor manufacturing.
"Not all raw materials is available here and we'll have to depend on the global. That will remain the same, it will not change. No one country or one geography can own the complete supply chain of either the raw materials or the electronics and semiconductors," he said
On semiconductor manufacturing projects, Bishnoi said more than 10 plants have been approved in the country so far. He said around four of these facilities have already started production, while several others are at different stages ranging from ground breaking and construction to operational readiness.
"Over the next two years, I think we'll see a lot of these or most of these into what we call as a production line," he said, adding that ensuring adequate designs and wafers to utilise these facilities would be critical to their commercial success.
Bishnoi said India currently has one logic fabrication facility and multiple OSAT (Outsourced Semiconductor Assembly and Test) projects. However, he noted that significant opportunities remain in specialty manufacturing segments, including display fabs, silicon-germanium technologies, silicon-carbide manufacturing and power electronics.
— ANI
Reader Comments
The emphasis on talent development from ITIs and diploma programmes is a game-changer! Not just IIT graduates—we need technicians and operators too. AI integration in skilling is smart. But I hope the government also focuses on reducing red tape for these fabs. Land acquisition and clearances are still nightmares in many states.
Interesting perspective from an industry insider. The comment about sustainability beyond government incentives is crucial. We've seen too many subsidy-dependent industries struggle in India. Creating a genuine buyer-seller market for chips made in India will be the real test. Also, specialty segments like silicon-carbide for EVs are a massive opportunity—hope we don't miss that boat.
Slightly skeptical about the "10+ plants approved" claim. How many are actually operational? We've seen big announcements before that fizzled out. But credit where due—the shift from just design to design+manufacturing is the right direction. My concern is the dependence on imported raw materials; geopolitics can disrupt supply anytime. Need more domestic mining and processing of specialty chemicals and gases. 🤔
As someone working in the electronics supply chain, I can say this is spot on. The ecosystem needs to include everything from chemicals to water treatment. We can't build fabs without these ancillary industries. Also glad they mentioned IP creation—we need Indian patents in chip design, not just assembly. The ISM 2.0 should have clear IP incentives. Good article! 👍
A constructive criticism: We need more transparency on how these plants are being approved and who gets the
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