{"id":2448,"date":"2025-10-23T21:27:00","date_gmt":"2025-10-23T21:27:00","guid":{"rendered":"https:\/\/bordersandbeyond.in\/blog\/?p=2448"},"modified":"2026-03-11T10:05:23","modified_gmt":"2026-03-11T10:05:23","slug":"indias-semiconductor-mission-can-it-fuel-the-military-modernization","status":"publish","type":"post","link":"https:\/\/bordersandbeyond.in\/blog\/indias-semiconductor-mission-can-it-fuel-the-military-modernization\/","title":{"rendered":"India\u2019s Semiconductor Mission: Can It Fuel the Military Modernization?"},"content":{"rendered":"\t\t
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Introduction<\/strong><\/p>\n\n

In contemporary world, national power is being determined by the technological capability and semiconductors have emerged as the new critical technology in the digital world. They are fast becoming part of our daily lives through\u2014phones, computers, cars. In terms of defence and security they are also becoming of part of defence arsenal such as radars, missiles and fighter jets of any nation. It has almost become impossible for countries to sustain without semiconductors. Modern technology and defence systems are all dependent on semiconductors. The Indian government realised the significance of semiconductors and started a fundamental program \u201cSemiconductor Mission\u201d in 2021 under the \u2018Digital India\u2019 initiative (Press Information Bureau, 2022). It aims to reduce dependency on imports and make India self-reliant in chip designing and manufacturing. The strategy behind it offers big investments and partnerships to set up factories and research centres in various parts of India so that country can become self-reliant (IBEF, 2023). Yet an important question remains: Can this mission truly support India\u2019s ongoing military modernization?<\/p>\n\n

The defence transformation in India under programs like \u2018Make in India\u2019 and Atmanirbhar Bharat<\/em> depends on native technology and secure supply chains. But still 90% of the defence chips are imported. Thios increase the risks and challenges such as wars or political conflicts. The government joined hands with U.S., Japan and Taiwan for a Rs. 76,000 crore semiconductor programs. It shows a recognition that technological self-sufficiency is now the primary element of national security. However, India faces many challenges such as Lack of advanced manufacturing infrastructure, limited technological expertise and dependency on foreign technology for critical equipment and design tools.\u00a0<\/p>\n\n

Despite these challenges, India\u2019s long-term predictions are promising. With increasing investments in defence technology, policy alignment under \u201cMake in India\u201d and \u201cAtmanirbhar Bharat\u201d and increasing collaborations with countries serve as the backbone of India\u2019s defence electronics and AI-enabled warfare systems. Hence, the semiconductor mission is more than a technology program. It\u2019s another step towards national security and independence. India, like this, can meet its defence needs as well as emerge as a global player in the semiconductor industry (Carnegie Endowment 2025).\u00a0<\/p>\n\n

Background: Understanding Semiconductors<\/strong><\/p>\n\n

Semiconductors are the materials whose electrical conductivity lies between that of insulators and conductors. This allows them to control the flow of current in electronic devices. This unique property of semiconductors allows them to serve as the basis of microprocessors, memory chips, sensors and transistors. The most common semiconductor material is used is silicon. Its used to make microchips that control how the devices think and work.\u00a0<\/p>\n\n

In the civilian sector, semiconductors are essential in smartphones, computers, medical equipment, automobiles, and communication systems. In the military domain, they are even more critical\u2014used in radar systems, missiles, electronic warfare devices, secure communication networks, satellites, and artificial intelligence (AI)\u2013driven defence platforms. Without reliable and advanced chips, even the most sophisticated weapon systems cannot function efficiently (ORF, 2023).<\/p>\n\n

The global semiconductor landscape is very much interdependent and concentrated in a few important regions. The American companies like Intel, NVIDIA and AMD designs the most advanced chip manufacturing companies. TSMC, a Taiwanese company makes the high-tech chips. Japan supplies the essential materials and equipment. South Korea controls the most manufacturing nodes. But China still lags in chip fabrication due to export controls by the United States and its allies. This control makes semiconductors a strategic geopolitical asset. COVID-19 pandemic or the US-China tensions revealed that the semiconductor industry is very sensitive. Control over semiconductor supply chains is now viewed as vital to both economic stability and national security. Hence, India is promoting native manufacturing of these chips. Indian government understood that semiconductor independence is more about strategic power and not just technological advancement in the modern digital world (Circuit Digest, 2023).\u00a0<\/p>\n\n

India\u2019s Semiconductor Mission<\/strong><\/p>\n\n

Indian government launched the Semiconductor Mission in 2021. It aims to make the country a global hub for chip fabrication, design and innovation. It shows country\u2019s determination to enter in the global semiconductor manufacturing ecosystem. Since decades, India is excelling chip design and software. But remains dependent on chip manufacturing. But the government recognized the strategic and economic risk of this dependence. Hence it announced a Rs. 76000 crore incentive package to attract global and domestic investors (India Science & Technology, 2023).\u00a0<\/p>\n\n

The India Semiconductor Mission (ISM) is a dedicated agency under the Ministry of Electronics and Information Technology (MeitY) that handles policy, coordination, and investment facilitation for its missions. It works on several aspects:\u00a0<\/p>\n\n