To strengthen semiconductor capabilities, ISM 2.0 will focus on silicon carbide wafers over conventional silicon.
The Indian government will accord strategic priority to silicon carbide (SiC)-based wafer manufacturing under the upcoming second phase of the India Semiconductor Mission (ISM). The move comes as SiC wafers, which operate at higher voltages, temperatures and frequencies, are increasingly critical for advanced power electronics and energy-efficient applications.
The Ministry of Electronics and Information Technology (MeitY) is finalising the contours of ISM 2.0. This follows the near-exhaustion of funds under ISM’s first phase, which had an outlay of ₹760 billion. Of this, ₹6,290 million has already been allocated across 10 approved projects, MeitY secretary S. Krishnan said last week.
Earlier this month, the government approved the country’s first SiC fabrication unit. Chennai-based SicSem Private Limited, in partnership with Scotland’s Clas-SiC Wafer Fab, will set up a ₹20.66 billion facility in Bhubaneswar. The fab, expected to be India’s first commercial compound semiconductor unit, will have an annual capacity of 60,000 wafers and packaging capacity for 96 million chips. Meanwhile, Tata Group’s ₹910 billion project in Dholera, Gujarat, will focus on conventional silicon wafer production.
Industry executives noted that SiC manufacturing remains highly capital intensive, with companies such as Zoho-owned Silectric Semiconductor shelving plans for a Mysuru campus earlier this year due to insufficient government support. Domestic players have called for enhanced backing in consultations for ISM 2.0.
Research is also underway to strengthen indigenous capabilities. The Defence Research and Development Organisation’s Solid State Physics Laboratory developed 4-inch SiC wafers last year, marking a step towards self-reliant semiconductor production.
The government views SiC technology as critical for sectors such as industrial motor drives, renewable energy systems and electric mobility.
