The government of India will reportedly give priority to proposals for silicon carbide (SiC)-based wafer manufacturing under the second phase of the India Semiconductor Mission (ISM). The electronics and information technology ministry is in the process of finalising the framework of ISM 2.0 with SiC wafers designated as a strategic focus.
The funds allocated under the first phase of ISM, which had an outlay of Rs 760 billion and supported 10 approved projects so far, have nearly been exhausted.
The emphasis on SiC wafers arises because they function effectively at higher voltages, temperatures and frequencies. In semiconductor production, a wafer refers to a thin, circular slice of crystalline semiconductor material, most often silicon, on which integrated circuits are constructed.
Additionally, power electronics, a branch of electrical engineering, concentrates on energy-efficient conversion and management of electric power using solid-state semiconductor devices. Applications include industrial motor drives, renewable energy systems, and low-power devices such as laptops and mobile phones.
The first fabrication (fab) unit for producing SiC wafers received approval earlier in August 2025 under ISM. Chennai-based SicSem Private Limited, in partnership with Scotland-based Clas-SiC Wafer Fab, is setting up a Rs 20.66 billion SiC compound semiconductor facility in Bhubaneswar, Odisha. Planned as India’s first commercial compound fab, it will offer an annual output of 60,000 wafers and packaging capacity for 96 million chips. By contrast, Tata Group’s Rs 910 billion facility in Gujarat’s Dholera is being developed to manufacture silicon wafers.
Similarly, domestic semiconductor firms have conveyed to the government that stronger assistance is necessary to establish SiC production in the country.
