Semicon 2.0
The Union Cabinet chaired by the Prime Minister has approved the Semicon 2.0 for the development of India's semiconductor design and manufacturing ecosystem, with a total budget outlay of Rs.1,27,500 crore.
About Semicon 2.0
It is a large-scale, long-term national policy framework aimed at delivering continuous financial and infrastructure backing to the semiconductor industry. It shifts India’s tech ecosystem from simple chip assembly to full self-sufficiency in cutting-edge fabrication, equipment design, and raw material processing.
The scheme forms a key part of the India Semiconductor Mission (ISM).
Semicon 2.0 is aimed to holistically build the semiconductor ecosystem on the following six pillars:
First pillar:-
Design: Semicon 2.0 will build upon the initial success in chip design. With 105 startups already started developing chips, the focus is on deepening the design ecosystem. Further, building blocks have been identified for the development of strategic and commercial products. Under Semicon 2.0, the aim is to develop IPs, designs of chips and systems with this approach. The work under Semicon 2.0 will place India as a key semiconductor chip design IP country.
Second pillar:-
Machines and materials: Companies involved in the manufacturing and R&D of the machines and manufacturing of materials, chemicals and gases that are essential for manufacturing semiconductors will be incentivized. This will lay the foundation for the sustainable growth of the semiconductor industry. This will also help in developing the precision manufacturing industry in our country.
Third pillar:-
Setting up more fabs: With the first fab scheduled to be commissioned in 2028, the world is showing greater confidence in India’s semiconductor strategy. Efforts will be made to attract more manufacturers to come to India and set up fabs to manufacture chips. This will include silicon fabs, compound semiconductor fabs, discrete component fabs, display fabs, etc.
Fourth pillar:
Further strengthening the ATMP/OSAT industry: With the success of ATMP units, the world is now looking at India as an alternative location for setting up ATMP/OSAT units. These will be actively encouraged with a focus on getting some of the most advanced ATMP technologies to India.
Fifth pillar:-
Research & Development: The semiconductor journey has started with 28nm-110nm as the node. Now, the focus will be on developing more advanced nodes and other advanced technologies in collaboration with leading R&D centres within and outside India.
Sixth pillar: -
Talent development: With 315 universities training students on complex chip design using the latest EDA tools, around 68,000 students have already been trained. It will be developed further and deepen the level of training while in college. Further, the industry will be actively engaged in deepening the clean room, fab construction and other ecosystem training as well.
Further, Semicon 2.0 will support economic growth across all sectors, strengthen national security through enhanced supply chain resilience, and help establish technological leadership in critical sectors. Approach of building the complete ecosystem, will catalyse semiconductor design and manufacturing in India.
Why It Matters
Home-grown chip manufacturing strengthens defence, satellites, telecom, and other critical infrastructure by cutting reliance on overseas semiconductor supply chains. It also boosts consumer electronics, telecom, industrial automation, and EVs by reducing imports and making Indian products more competitive globally.
Conclusion
Semiconductors sit at the "commanding heights" of the digital economy. India has a strong design base, a huge domestic market, and strong policy support — a rare combination that presents a historic opportunity. But real success will depend on strong execution, consistent policies, and a deep ecosystem. India needs to look beyond just assembly and aim to become a product-driven nation that leads global innovation
NOTE:- It is part of UPSC GS Paper-3 under Government Scheme and General studies paper 2 of the BPSC mains exam
SOURCE : https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284784®=48&lang=2
