Secretary to the Ministry of Electronics and Information Technology (MeitY), S Krishnan, has said that the next edition of the India Semiconductor Mission Programme is in the works, adding that the funds allotted under the first edition of the programme have been exhausted for setting up major fabrication units (fabs).
Krishnan was speaking at the ‘Breakfast with businessline’ event in Hyderabad on Thursday. He said that the next edition is being worked out , but did not provide a specific timeline for its rollout.
Krishnan emphasised on the need to set up about 10 to 12 fabs of all types to support the country’s broad technological goals. “Not all of them are as expensive as a silicon carbide CMOS farm. The others are smaller and the investment sizes are smaller,” he said.
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More fabs needed
Even as India’s semiconductor ambitions are being realised in the form of Tata Electronics setting up a fabrication unit in Gujarat, Krishnan suggested that the country needs more than this. He proposed establishing two or three such fabs “for a country the size of India”.
He underscored the substantial financial incentives available for semiconductor projects in the country. The Central government covers 50 per cent of the project costs on a ‘pari passu’ basis, sharing the risk with the private sector. Respective State governments contribute an additional 20 per cent to 25 per cent, potentially covering up to 75 per cent of the project cost.
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Amid India’s efforts to match pace with advancing technology, Krishnan addressed the Centre’s focus on 28nm chips. He noted the higher investment needed for cutting-edge chips and significant cost jumps when moving below the 21nm to 18nm range and again below 4nm or 5nm.
Krishnan further advocated for a strategic approach, beginning with mature nodes (28nm to 140nm) to serve a large existing market across consumer electronics, automotive and medical devices. This allows industries to gain experience and gradually push towards smaller nodes through research, reducing dependence on foreign technology purchases.
Krishnan emphasised the importance of strategic autonomy in semiconductor technology. He noted governmental efforts to develop India’s own GPU architecture and specific chips for its needs. Initiatives like the ‘Chips to Start-up’ programme, led by IIT Madras and CDAC, are crucial in developing indigenous chip capabilities based on the vis 5 architecture.