Only fabs OSATs are not enough to grow the industry or make it globally competitive and therefore, the entire ecosystem needs to be supported by ISM and the government.
The government of India has now announced plans to escalate the semiconductor incentive scheme, a move that will significantly boost India’s chip fabrication, design, and packaging industry. This initiative also aims to attract other companies to the industry. According to Akash Tripathy, the CEO of ISM, the scheme under the India Semiconductor Mission (ISM) has been a key driver of the nation’s semiconductor industry, attracting billions of dollars of investments in the past two years and providing a solid foundation for future growth.
Tripathy also added that around twenty more proposals by a diverse range of companies, including chip fabrication companies, packaging firms, raw materials, and display fabrication companies, have been submitted. These applications will be reviewed by the government and ISM, a process that will further diversify and strengthen the industry.
The aim was to grow and assist the industry for at least ten years until it matured. Therefore, expansion is needed, and ISM has contributed tremendously to approving the projects and helped create separate funds to boost the ecosystem. The government will invite other domains of the semiconductor industry, such as gas companies, raw materials suppliers, and equipment makers, to set up their units in India.
Only fabs and OSATs are not enough to grow the industry or make it globally competitive; therefore, ISM and the government need to support the entire ecosystem. Tower Semiconductor and Adani’s JV of creating a $10 billion fab proposal has yet to be approved and considered by ISM, and the government has urged additional details about the company. In the meantime, the proposal to set up the plan at Taloja in Panvel has been approved by the Maharashtra state cabinet.
