Unauthorized control by the Congress party's license regime hindered semiconductor advancements, according to Ashwini Vaishnaw's criticism of UPA's policy inaction.
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India's journey in the semiconductor industry has been a long and winding one, with periods of promise and setbacks. According to Congress leader Jairam Ramesh, the country's first Semiconductor Complex was established in Chandigarh in the early 1980s. However, the promise of a Made-in-India semiconductor chip has been made multiple times without delivery.
The Semiconductor Complex Limited in Chandigarh started operations in 1983, but the industry failed to develop significantly during the Congress-led government period. Early setbacks, lack of sustained political will, and structural challenges hindered progress, despite some technological advances in the 1980s.
For instance, the Semiconductor Laboratory (SCL) in Mohali achieved technological milestones in the mid-1980s comparable to global standards at that time. Yet, a major fire and ensuing inertia stalled progress for decades, leaving India far behind global leaders as countries like China and Taiwan surged ahead.
It was only more recently, under the current BJP-led government, starting with the launch of the India Semiconductor Mission (ISM) in 2021, that India recommitted to building a domestic semiconductor ecosystem with massive investments (~₹76,000 crore) and multiple new projects approved across fabrication, testing, and packaging facilities.
Prime Minister Narendra Modi has promised that the first Made in India chip will be rolled out by the end of 2025. This renewed focus has begun to yield results, with the industry showing signs of revitalisation. Two of the largest equipment manufacturers, Applied Materials and Lam Research, are setting up their design, production, and validation facilities in India.
Moreover, six other semiconductor units (one fab and five ATMP) are at different stages of planning, construction, and execution. Another silicon carbide fab and three more ATMP, including the most advanced packaging unit, were approved last week.
Union Minister Ashwini Vaishnaw accused the Congress-led previous government of failing to develop the semiconductor industry in India. He claimed that policy paralysis under the UPA regime prevented Intel from setting up a semiconductor unit in India in 2005-06.
Robert Noyce, the founder of Fairchild and Intel, was not allowed to set up a semiconductor plant in India due to the "License permit raj" of the Congress government in 1964.
In summary, India's semiconductor ambitions faltered for decades under Congress-led governments—initial promise was not capitalized on due to both political and systemic constraints—while recent efforts have revitalized the sector with significant public-private collaboration and investment. The timeline, key challenges, technical progress, political will & investment, and outcome of this journey are outlined in the table below:
| Aspect | Congress-led Period | Post-Congress/BJP Government | |-----------------------------------|----------------------------------------------------|----------------------------------------------------| | Timeline | 1980s - 2010s (approx.) | From 2021 onwards | | Key Challenges | Fire at SCL facility, inertia, lack of scale, structural issues | Large-scale investment, national mission, ecosystem building | | Technical Progress | Early achievements (5,000 nm to 800 nm tech nodes) but no scale | Focus on advanced nodes (28 nm to 90 nm), multi-state projects | | Political Will & Investment | Limited and inconsistent | Strong government push, ₹76,000 crore mission budget | | Outcome | India remained mostly a semiconductor consumer | Transition to manufacturing hub with first chip by 2025 expected |
This article is related to stock market quotes, share market, India news, business news, and our website app. Beyond the chipmakers, there are three 'hidden' stocks powering India's semiconductor boom (inputs from agencies). The semiconductor industry's progress under the current government has been a topic of debate, with Congress leaders accusing Prime Minister Narendra Modi of making the promise with a "huge lie". However, the promise of a Made-in-India semiconductor chip by the end of 2025 signals a shift from failures in previous eras to emerging success.
- The semiconductor industry's progress under the current BJP-led government has sparked debate, with some claiming it is a shift from past failures to emerging success.
- The timeline for India's first Made-in-India chip is set for the end of 2025, marking a departure from previous eras of promises without delivery.
- Congress leaders have accused Prime Minister Narendra Modi of making the promise with a "huge lie," but the focus on investing in the semiconductor industry suggests a commitment to business and technology.
- Beyond chipmakers, there are three 'hidden' stocks powering India's semiconductor boom, a development that is related to the stock market quotes, share market, and business news.
- Policy and legislation, particularly in the realm of finance and technology, will play a crucial role in shaping the future of India's semiconductor industry and its impact on the general news landscape.
