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. (Answer in 250 words)

Introduction

Semiconductors underpin digital infrastructure, defence, automobiles and clean technologies; manufacturing requires an exceptionally reliable ecosystem.

Challenges

• Fabrication demands huge capital, advanced intellectual property, ultra-pure water, uninterrupted power and contamination-free facilities.
• India has gaps in process technology, semiconductor equipment, materials, design-to-fab links and specialised talent.
• Long gestation, global concentration, rapid obsolescence and competition from established hubs increase commercial risk.
• Logistics, testing and packaging capacity, regulatory coordination and supply of critical gases remain constraints.

India Semiconductor Mission

• It provides institutional coordination and fiscal support for semiconductor fabs, display fabs and compound-semiconductor facilities.
• Support extends to design-linked incentives, semiconductor packaging, assembly, testing and certification ecosystems.
• The mission seeks to build a resilient supply chain, attract technology partnerships, create skilled employment and deepen domestic value addition.
• It emphasises transparent project selection, technology transfer and integration with electronics manufacturing.

Way forward

Prioritise a few viable nodes, invest in R&D and skilling, secure water and energy sustainably, and develop trusted international partnerships rather than pursuing capacity without ecosystem depth.

Keywords: fabs, OSAT, design-linked incentive, cleanroom, supply-chain resilience, strategic technology.