Govt tracking chip supply snags as units come alive

The Centre is closely monitoring global supply constraints at a time when it expects the import of integrated circuits (ICs) or semiconductor chips to sharply expand throughout FY27 as assembly, testing, marking and packaging (ATMP) units under the India semiconductor mission (ISM) begin production this year, officials told ET.

ICs including processors, controllers and memories, are now the 3rd largest single import item for India. In April-December of FY26, the value of imported chips rose to $12.62 billion, making it the largest concentrated cost within India’s inbound trade after imported crude oil and gold, official figures show. Imports widened 12.79% over the same period.