What happened?
The Union Cabinet approved Semicon 2.0 to develop India’s semiconductor design and manufacturing ecosystem. The programme has a total budget outlay of ₹1,27,500 crore.
The six pillars
- Design: deepen India’s chip-design ecosystem and support the development of intellectual property, chips and systems.
- Machines and materials: encourage manufacturing and research related to semiconductor equipment, materials, chemicals and gases.
- More fabrication plants: attract additional silicon, compound-semiconductor, discrete-component and display fabs.
- ATMP/OSAT: strengthen semiconductor assembly, testing, marking and packaging capabilities, including advanced technologies.
- Research and development: move towards more advanced nodes and technologies through collaboration with research centres in India and abroad.
- Talent development: deepen training in chip design, clean-room work, fab construction and other ecosystem skills.
Important facts for revision
- The PIB release says 105 startups had already started developing chips.
- It reports that 315 universities were training students using electronic design automation tools and around 68,000 students had been trained.
- The first fab is scheduled to be commissioned in 2028, according to the release.
- Under ISM 1.0, 12 manufacturing units had been approved with cumulative investment above ₹1.64 lakh crore.
Why it matters
Semiconductors are critical inputs for electronics, telecommunications, automobiles, power systems, aerospace and emerging technologies. The programme links industrial development with supply-chain resilience, research capacity and skilled employment.
Exam takeaway
Remember the programme’s six-pillar structure. In a descriptive answer, connect semiconductor policy with strategic autonomy, advanced manufacturing, research and development, and supply-chain security.