India has approved the establishment of a National Semiconductor Materials Mission aimed at strengthening domestic production of critical upstream inputs essential for chip manufacturing. Announced on December 28, 2025, the mission addresses a major vulnerability in India’s semiconductor strategy by focusing on materials such as silicon wafers, specialty gases, photoresists, advanced chemicals, and packaging substrates.
While India has made progress in attracting chip fabrication and assembly investments, policymakers have identified upstream materials as the weakest link in the supply chain, with heavy reliance on imports from East Asia. The new mission seeks to close this gap through targeted financial incentives, research and development grants, and public-private partnerships with global materials suppliers.
Dedicated semiconductor materials clusters are planned near upcoming fabrication hubs to reduce logistics costs, ensure just-in-time delivery, and improve supply resilience. The initiative will also support collaboration between industry and academic institutions to build long-term capabilities in materials science, process engineering, and quality control.
Officials expect the mission to significantly lower import dependence over the next five years, enhance supply-chain security, and reduce exposure to geopolitical disruptions. Beyond strategic considerations, the program is projected to generate high-skill employment and support India’s ambition to become a globally competitive electronics manufacturing hub.
The mission reinforces India’s broader industrial policy goals by linking national security, economic competitiveness, and technological self-reliance in a sector critical to future growth.
