Navy Chief Admiral Dinesh K Tripathi has emphasised the crucial role of a semiconductor policy in enhancing India's defence manufacturing capabilities.

This assertion highlights the strategic importance of semiconductors in modern military technology, where they are integral to advanced systems such as GPS-guided munitions, AI, and quantum computing. India's reliance on imported semiconductors poses a significant challenge, with imports increasing from ₹67,497 Crores in 2020-21 to ₹1,29,703 Crores in 2022-23.

To address this, the Indian government has launched initiatives like the India Semiconductor Mission and the Production-Linked Incentive (PLI) scheme worth about $10 billion to foster domestic semiconductor production.

The development of a comprehensive semiconductor policy is seen as vital for creating a robust ecosystem that supports indigenous defence manufacturing. This policy would facilitate strategic partnerships between domestic defence manufacturers and semiconductor companies, enabling the production of critical components for military applications.

Furthermore, collaborations with international partners, such as those in the QUAD countries and Southeast Asia, are being explored to leverage global expertise and strengthen India's semiconductor capabilities.

In addition to policy support, significant investments are being made to establish semiconductor manufacturing facilities. For instance, TATA Electronics is setting up a fabrication plant in Dholera, Gujarat, in partnership with Taiwan's PowerChip Semiconductor Manufacturing Corporation (PSMC), which will produce chips for sectors like automotive and AI.

The government has also earmarked substantial funds for defence modernization, with a focus on private sector involvement in defence manufacturing.

A well-crafted semiconductor policy is essential for India to achieve self-reliance in defence manufacturing and enhance its national security posture.

Agencies