What Happened
- CSIR-National Institute of Science Communication and Policy Research (CSIR-NIScPR) organised a day-long workshop titled "Strengthening India's Semiconductor Ecosystem: Policies, Challenges, and Opportunities" on February 27, 2026, at Vivekananda Hall, Pusa Campus, New Delhi.
- The workshop was organised to support a comparative study on global semiconductor policies and strategies relative to India's semiconductor ecosystem, bringing together stakeholders from R&D institutions, government, academia, and industry.
- Participating organisations included India Semiconductor Mission (ISM) under MeitY, BITS Pilani, NITI Aayog, CSIR-CEERI Pilani, DRDO's Solid State Physics Laboratory, Intel India, Lam Research, and Applied Materials.
- A key finding highlighted at the workshop: India has strong global design leadership but remains approximately 95% import-dependent for semiconductor chips — a critical vulnerability described as India's "semiconductor paradox."
- Deliberations called for coordinated efforts in R&D, design, manufacturing, skills development, and policy support to position India as a credible global semiconductor hub by 2030.
Static Topic Bridges
Semiconductor Value Chain: Design, Fabrication, and Assembly
The semiconductor value chain encompasses several stages: research and design (EDA tools, IP licensing), wafer fabrication (fabs), assembly, testing, and packaging (ATMP), and the equipment and materials sector. Countries and companies typically specialise in different segments. The value chain is characterised by extreme capital intensity, long gestation periods, and heavy dependence on a handful of equipment and materials suppliers.
- Fabless model: Companies (like Qualcomm, Apple) focus only on chip design and outsource fabrication to foundries (like TSMC, Samsung).
- Foundry model: Companies like TSMC manufacture chips designed by others; TSMC alone handles approximately 55–60% of global foundry revenue.
- Integrated Device Manufacturers (IDMs): Companies like Intel that both design and fabricate chips.
- India's current strength is primarily in chip design — companies like Qualcomm, Intel, Nvidia, and AMD all have large R&D and design centres in India, particularly in Bengaluru, Hyderabad, and Pune.
- India lacks commercial-scale semiconductor fabrication (fabs), making it almost entirely import-dependent for chips used in electronics, defence, automobiles, and telecom.
Connection to this news: The CSIR-NIScPR workshop's core objective — "assessing India's current landscape and identifying gaps" — directly maps to this value chain analysis, emphasising the need to move India beyond design into fabrication and packaging.
India Semiconductor Mission (ISM) and Policy Framework
The India Semiconductor Mission (ISM) was established in December 2021 under MeitY as the nodal agency for implementing India's semiconductor and display ecosystem development programme. The government approved a Rs 76,000 crore Production Linked Incentive (PLI) scheme for semiconductors, with fiscal support of up to 50% of project cost for approved semiconductor fab applicants.
- ISM 1.0 (December 2021): Laid the foundation; 10 approved semiconductor projects across six states as of 2026, including India's first commercial Silicon Carbide fab in Odisha and an advanced packaging unit.
- ISM 2.0 (announced 2026): Focuses on Equipment & Materials, Design IP, Supply Chains, and R&D Centres — moving beyond assembly and packaging to deeper manufacturing capabilities.
- India Semiconductor Market size: ~$38 billion in 2023; expected to reach $100–110 billion by 2030.
- Design Linked Incentive (DLI) Scheme: Provides financial support to domestic companies/startups working on semiconductor design, chip design, and embedded software.
- The US CHIPS and Science Act (2022) allocated $52 billion for domestic semiconductor R&D and manufacturing — a model India has partly benchmarked its own programme against.
Connection to this news: The workshop explicitly referenced the need for ISM 2.0 and "evidence-based policy reforms" — positioning CSIR-NIScPR's study as a policy input document that could shape the next iteration of India's semiconductor strategy.
India's Semiconductor Import Dependence and Strategic Vulnerability
India imports nearly all of its semiconductor requirement, primarily from Taiwan, South Korea, and China. The 2020–2021 global semiconductor shortage — triggered by pandemic-related supply chain disruptions — exposed vulnerabilities across multiple sectors including automobiles, electronics, and medical devices. Semiconductors are classified as a "critical technology" with dual-use implications for defence and national security.
- India's semiconductor import bill runs into tens of billions of dollars annually; the Electronics Policy 2019 set a target to produce $400 billion in electronics by 2025, but chip self-sufficiency remains elusive.
- The global semiconductor supply chain is highly concentrated: Taiwan accounts for ~60% of global foundry capacity; ASML in the Netherlands holds a near-monopoly on extreme ultraviolet (EUV) lithography machines essential for advanced chips.
- China's dominance in legacy (28nm+) chips and the US-China chip war (export controls on advanced chips to China since October 2022) have created geopolitical urgency for countries like India to build domestic capacity.
- The DRDO's Solid State Physics Laboratory (SSPL) works on compound semiconductors (GaAs, GaN) for defence applications — distinct from commercial silicon fabs.
Connection to this news: India's 95% import dependence, highlighted at the workshop, is both an economic vulnerability and a national security concern. The workshop's outcomes aim to inform policy interventions that could reduce this dependence through a phased, coordinated approach.
Key Facts & Data
- Workshop date: February 27, 2026, CSIR-NIScPR, New Delhi
- India semiconductor paradox: Strong design leadership + ~95% import dependence for chips
- ISM approved investment: Rs 76,000 crore PLI scheme; ~Rs 65,000 crore already committed
- 10 approved semiconductor projects across 6 states (as of 2026)
- India semiconductor market: ~$38 billion (2023); projected $100–110 billion by 2030
- ISM 2.0 focus areas: Equipment & Materials, Design IP, Supply Chains, R&D Centres
- US CHIPS Act (2022): $52 billion for domestic semiconductor R&D and manufacturing
- TSMC global foundry share: ~55–60% of global foundry revenue
- CSIR-NIScPR: Autonomous institute under the Department of Science and Technology (DST)