Navigating the Semiconductor Race: India’s Next Tech Frontier

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(Source: The Indian Express, Editorial Page)

Also Read: The Indian Express Editorial Analysis: 25 june 2025
Also Read: The Hindu Editorial Analysis: 25 June 2025

Topic: GS Paper 3 – Economy (Infrastructure, Investment); GS Paper 3 – Science and Technology
Context
  • India’s strategic push to build a semiconductor ecosystem is crucial for technological sovereignty and reducing import dependency, especially in the backdrop of global supply chain disruptions.

Background:

  • India launched the India Semiconductor Mission (ISM) in 2021.

  • COVID-19 exposed global chip vulnerabilities, impacting auto, electronics, and telecom sectors.

Key Points:

  • Strategic Significance: Chips are the backbone of digital, defense, and industrial infrastructure.

  • Government Incentives: ₹76,000 crore support under ISM for fabs and design units.

  • Challenges:

    • High capex and long gestation periods.

    • Limited skilled workforce and supply chain.

    • Need for consistent power and water supply.

Analysis:

  • Geo-Strategic Leverage: Enhances India’s tech autonomy in the Quad context.

  • Economic Impact: Boosts manufacturing, exports, and high-end employment.

  • Execution Risks: Risk of delays, dependence on foreign tech partners.

Way Forward:

  • Build a skilled workforce via targeted training.

  • Strengthen research ecosystems around IITs and tech parks.

  • Encourage partnerships with global semiconductor leaders.

Practice Question: (GS-3 | 15 Marks | 250 Words)
Discuss the strategic and economic significance of developing a semiconductor manufacturing ecosystem in India. What measures are necessary to ensure the success of the India Semiconductor Mission?

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