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2 New Semiconductor Units Approved in Gujarat Under ISM

2 New Semiconductor Units Approved in Gujarat Under ISM:

Under the India Semiconductor Mission (ISM) 1.0, the Union Cabinet approved two semiconductor projects in Gujarat, including India’s 1st commercial GaN-based Mini/Micro-LED display facility and a semiconductor packaging unit.

  • With the approval of these two projects, the total number of semiconductor plants under the ISM 1.0 has increased to 12, with facilities being established across Gujarat, Assam, Andhra Pradesh, Uttar Pradesh, and Odisha.
  • India Semiconductor Mission (ISM) 1.0 was launched in 2021 under the Ministry of Electronics and Information Technology (MeitY) to develop a robust semiconductor and display manufacturing ecosystem in India. With an outlay of Rs 76,000 crore, the mission supports semiconductor fabrication, display manufacturing, and chip design to strengthen India’s integration into global electronics value chains.
  • India is expected to attain the capability to design and manufacture chips catering to nearly 70–75% of domestic applications by 2029 and emerge among the world’s leading semiconductor nations by 2035. Building on this progress, the government announced the next phase, India Semiconductor Mission (ISM) 2.0, in the Union Budget 2026–27.
  • India Semiconductor Mission (ISM) 2.0:
    • ISM 2.0 marks a shift from manufacturing-focused incentives towards a broader USD 11 billion strategy aimed at ecosystem localisation and indigenous chip design.
    • It seeks to develop a full-stack semiconductor ecosystem by supporting ancillary sectors such as chemicals and capital goods.
    • These facilities will meet rising semiconductor demand across consumer electronics, industrial, auto, telecom, aerospace, and power sectors.
    • Projects utilizing indigenous technologies for assembly, testing, and packaging reflect India’s growing capabilities, reduced external dependence, and deeper integration into the global semiconductor value chain.