Published Online:March 2025
Product Name:The IUP Journal of Case Folio
Product Type:Article
Product Code:IJCF010325
DOI:10.71329/CaseFolio/2025.25.1.6-20
Author Name:Shwetha Kumari and Jitesh Nair
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:6-20
This case study examines the evolution of India’s semiconductor industry over six decades, focusing on key milestones, challenges, and their impacts on the country’s technological landscape. Starting from the 1960s, it traces the establishment of the Semiconductor Complex Ltd. (SCL) in 1984 and the subsequent struggles due to inadequate infrastructure and bureaucratic hurdles. The liberalization of the economy in the 1990s brought an influx of companies, but the industry continued to face significant issues. Renewed efforts began with the “Make in India” initiative in 2014 and the India Semiconductor Mission (ISM) in 2019, culminating in a $15.2 bn investment plan approved in 2024 to reduce reliance on imported chips. The case highlights India’s journey to secure a position in the global semiconductor ecosystem, addressing historical and current challenges. It provides a comprehensive view of quick wins, short-term ambitions, and long-term goals for developing a robust semiconductor ecosystem in India.
On February 29, 2024, the Union Cabinet of India approved a $15.2 bn investment plan for India to become self-sufficient in semiconductor production that included the building of three production units for semiconductors. The plan aimed to reduce India’s reliance on imported chips, which were used in a variety of industries including defense, auto, and telecommunications.iii “India will, in next five years, join the high-stake global stage of semiconductor manufacturing as it combines unparalleled design capabilities with $10 bn of incentives to draw manufacturers to set up new fabs and units that will cut dominance of Taiwan, South Korea and China”, stated IT and Telecom Minister Ashwini Vaishnaw (Vaishnaw).iv