India's Semiconductor Mission Expands to Drone Chip Manufacturing

India's Semiconductor Mission Expands to Drone Chip Manufacturing

India Manufacturing Review Team
Friday, 29 August 2025
  • ISM covers all key areas, including semiconductors for drones, boosting India’s role in global electronics
  • CG Power’s Sanand OSAT unit, partnered with Renesas and Stars Micro, invested Rs 7,600 crore
  • ISM (Rs 76,000 crore) backs chip design and fabrication, sets up a strategy division

Union Minister Ashwini Vaishnaw recently pointed out that the India Semiconductor Mission (ISM) is broadly enabled to cover all the aspects of semiconductor production, even for drones.

"Ten projects have been approved, covering almost every sector of the country--whether it's automotive, telecom, consumer electronics, or display modules. From a strategic perspective, important areas like drone manufacturing will also have semiconductor production taking place in India", the Minister stated.

He added, "PM Narendra Modi approved the Semiconductor Mission in 2022, and as part of that, the world's best semiconductor experts worked hard to make it a reality. The construction of those approved in 2023-24 is progressing well. The pilot line of CG Power has begun today. This pilot line is an advanced one. Production of the first made-in-India chip will begin soon... Developing the semiconductor industry is a vital step towards a self-reliant India".

Inaugurating the semiconductor OSAT unit set up by CG Power and Industrial Solutions Ltd in Sanand, he announced that the Prime Minister will be shortly dedicating the country's first chip produced by this unit.

The Minister noted, "CG Power's pilot line was inaugurated here today, and very soon, the chip produced from this pilot line will be dedicated to the nation by the Prime Minister".

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The semiconductor OSAT unit has been set up in partnership with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd., and involved a total investment of about Rs 7600 crore.

"Developing the semiconductor industry is a very important step towards making India self-reliant. The Prime Minister approved the Semiconductor Mission in 2022, and under this mission, global experts have worked, leading to the emergence of some good projects", Vaishnaw added.

The ISM launched last year with an outlay of Rs 76000 crore, and approved by the Union Cabinet last December, is India's first and flagship initiative to build a strong ecosystem for semiconductor and display manufacturing.

The program supports India’s fabrication and chip design, creates a dedicated independent division for strategy and implementation within the Digital India Corporation, promotes India globally as a semiconductor hub through initiatives such SEMICON India, and strengthens India’s role in global electronics value chains.

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