Semicon 2.0: Six Pillars of India’s Semiconductor Strategy

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

1. Design: deepen India’s chip-design ecosystem and support the development of intellectual property, chips and systems.
2. Machines and materials: encourage manufacturing and research related to semiconductor equipment, materials, chemicals and gases.
3. More fabrication plants: attract additional silicon, compound-semiconductor, discrete-component and display fabs.
4. ATMP/OSAT: strengthen semiconductor assembly, testing, marking and packaging capabilities, including advanced technologies.
5. Research and development: move towards more advanced nodes and technologies through collaboration with research centres in India and abroad.
6. 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.