In a strategic push to strengthen India’s semiconductor design ecosystem, the Centre has finalized a list of 25 priority products that will be supported under the India Semiconductor Mission (ISM) to accelerate indigenous intellectual property (IP) creation. Union Minister for Electronics and IT Ashwini Vaishnaw announced the development at Semicon India 2025, adding that the modernisation proposal for the Semiconductor Laboratory (SCL) in Mohali is ready and will soon be presented to the Cabinet for approval.
The move is part of the government’s broader vision to transition India from a manufacturing hub to a global innovation partner in the semiconductor value chain. The selected products span high-value low-volume, mid-value mid-volume, and high-volume low-value categories, and will be backed by targeted support under the Design Linked Incentive (DLI) scheme.
🧭 India’s Semiconductor IP Strategy: Key Highlights
| Initiative | Status / Update | Strategic Objective |
|---|---|---|
| 25 Priority Products Finalised | Announced by IT Minister Ashwini Vaishnaw | Accelerate domestic IP creation |
| SCL Modernisation Proposal | Ready for Cabinet review | Upgrade national chip design and testing hub |
| ISM 2.0 Launch | In progress | Expand scope to full chipset development |
| Design Linked Incentive (DLI) | 28 startups supported | Move from concept to product stage |
| IIT Madras Microcontroller | Released | Academic contribution to IP ecosystem |
Vaishnaw emphasized that the next phase of ISM will focus on full product development, including chipsets designed and owned by Indian companies, with IP rights residing within the country.
🔍 Breakdown of 25 Priority Semiconductor Products
The finalized matrix includes products across strategic sectors such as automotive, defence, consumer electronics, medical devices, and industrial automation.
| Product Category | Example Applications | Strategic Importance |
|---|---|---|
| Automotive Electronics | EV controllers, ADAS chips | Mobility transformation |
| Consumer Electronics | Smart TVs, camera SoCs | Mass-market adoption |
| Medical Devices | Imaging sensors, diagnostic chips | Healthcare innovation |
| Industrial Automation | IoT controllers, PLC chips | Smart manufacturing |
| Defence & Strategic | Secure communication, radar processors | National security |
Startups under the DLI scheme are already developing IoT chipsets, camera SoCs, and industrial controllers, with several products nearing commercialization.
📉 SCL Modernisation: A National Semiconductor Asset
The Semiconductor Laboratory (SCL) in Mohali, an autonomous entity under MeitY, is set for a major upgrade. The proposal includes transforming SCL into a high-performance R&D and testing hub for India’s semiconductor ecosystem.
| Facility Component | Current Capability | Proposed Upgrade |
|---|---|---|
| CMOS Line | 180 nm node, 8” wafers | Advanced node support |
| MEMS Line | 6” wafers | Expanded capacity |
| Wafer Starts Per Month | ~750 WSPM | Targeting 2x increase |
| Testing Infrastructure | Limited | Full-stack validation for startups |
| Research Focus | Compound semiconductors | AI, photonics, advanced packaging |
The upgraded SCL will serve as a national validation centre, enabling startups and academic institutions to test and refine chip designs before commercial rollout.
🔥 Semicon Mission 2.0: Expanding India’s Chip Capabilities
Building on the ₹76,000 crore outlay under ISM 1.0, the next phase—Semicon Mission 2.0—will prioritize full chipset development, capital equipment support, and ecosystem partnerships.
| Focus Area | ISM 1.0 Status | ISM 2.0 Expansion Plan |
|---|---|---|
| Fab and OSAT Units | Approved projects | Continued support |
| Design Ecosystem | 28 startups onboarded | Full product development |
| Capital Equipment | Limited support | Dedicated allocation |
| Material Manufacturing | Under review | Strategic inclusion |
| IP Ownership | Partial | Full IP rights to reside in India |
Vaishnaw noted that global trust in India stems from its respect for IP rights and collaborative approach, adding that ISM 2.0 will be more inclusive and experience-driven.
🧠 Expert Commentary and Industry Sentiment
| Expert Name | Role | Comment |
|---|---|---|
| Meera Iyer | Semiconductor Analyst | “Prioritizing indigenous IP is a game-changer for India’s chip ambitions.” |
| Rajiv Bansal | Electronics Consultant | “SCL’s upgrade will unlock domestic validation capabilities.” |
| Dr. Rakesh Sinha | Policy Advisor | “ISM 2.0 reflects India’s maturity in semiconductor strategy.” |
Industry leaders have welcomed the Centre’s focus on IP ownership and full-stack development, calling it essential for long-term competitiveness.
📦 India’s Semiconductor Ecosystem: Current Snapshot
| Component | Status / Progress | Strategic Role |
|---|---|---|
| Fab Projects | 3 approved, 2 under review | Domestic chip production |
| OSAT Units | 2 approved | Assembly and testing |
| Design Startups | 28 supported under DLI | IP creation and innovation |
| Academic Contributions | IIT Madras, IISc, IIT Bombay | Microcontrollers, EDA tools |
| Global Partnerships | Ongoing with US, Japan, EU | Technology transfer and co-development |
The government aims to position India as a trusted partner in the global semiconductor supply chain, with exports playing a key role in the strategy.
📌 Conclusion
With the finalization of 25 priority semiconductor products and the imminent Cabinet review of the SCL modernisation proposal, India is entering a new phase of semiconductor self-reliance. The Centre’s focus on indigenous IP, full-stack development, and ecosystem partnerships under Semicon Mission 2.0 reflects a strategic shift from manufacturing to innovation. As startups, academia, and industry align under this vision, India’s semiconductor journey is poised to accelerate toward global leadership.
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Disclaimer: This article is based on publicly available government announcements and media reports as of September 3, 2025. It is intended for informational purposes only and does not constitute financial, legal, or technological advice.
