Why the world is racing to build chip factories — and where India fits in.
Semiconductors (computer chips) are essential to virtually every modern electronic device — from smartphones to cars to defence systems. Global chip manufacturing is highly concentrated (dominated by Taiwan, South Korea, and the US), making supply chains vulnerable to geopolitical disruption, as seen during the global chip shortage (2020-22) that disrupted auto and electronics production worldwide.
Launched in December 2021 with an outlay of ₹76,000 crore, the India Semiconductor Mission (ISM) aims to build a complete semiconductor and display manufacturing ecosystem in India — offering fiscal support for setting up fabrication plants (fabs), display fabs, and Outsourced Semiconductor Assembly and Test (OSAT) facilities.
India has approved its first commercial semiconductor fab (in Dholera, Gujarat) and several OSAT/ATMP (assembly, testing, marking and packaging) units, in partnership with global players, as part of a broader push toward self-reliance ("Atmanirbhar Bharat") in critical and strategic technologies.
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