{"id":122019,"date":"2026-09-01T11:11:52","date_gmt":"2026-09-01T05:41:52","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=122019"},"modified":"2026-09-01T11:11:52","modified_gmt":"2026-09-01T05:41:52","slug":"india-semiconductor-mission-2-0","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/india-semiconductor-mission-2-0\/","title":{"rendered":"India Semiconductor Mission 2.0 &#8211; Building a Complete Semiconductor Ecosystem"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>India Semiconductor Mission Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">The Government has notified the second phase of the India Semiconductor Mission (ISM 2.0) with an outlay of about Rs. 1,27,500 crore. The scheme expands support beyond semiconductor fabrication to cover chip design, equipment, materials, packaging, research and development, and talent development.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Semiconductor Ecosystem in India<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Semiconductors are essential components used in smartphones, computers, automobiles, defence systems, telecommunications equipment, consumer electronics and artificial intelligence infrastructure.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Their strategic importance has increased because disruptions in global semiconductor supply chains can affect multiple industries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India has traditionally been strong in semiconductor design and engineering talent, but has had limited domestic manufacturing capacity.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Government policy has therefore increasingly focused on developing an integrated ecosystem covering the entire semiconductor value chain.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/india-semiconductor-mission-ism\/\" target=\"_blank\"><b>India Semiconductor Mission<\/b><\/a><span style=\"font-weight: 400;\"> was launched with this broader objective.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The first phase, or ISM 1.0, received an allocation of Rs. 76,000 crore and resulted in the approval of 12 projects involving around Rs. 1.64 lakh crore of cumulative investment.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>India Semiconductor Mission 2.0<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ISM 2.0 seeks to move beyond individual semiconductor projects and develop a complete domestic ecosystem. Its six pillars are:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Chip design:<\/b><span style=\"font-weight: 400;\"> Supporting indigenous chip design, particularly for strategically important applications.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Machines and materials:<\/b><span style=\"font-weight: 400;\"> Promoting domestic manufacturing of semiconductor equipment, chemicals and gases.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Fabs:<\/b><span style=\"font-weight: 400;\"> Supporting the establishment of semiconductor fabrication facilities.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Packaging and testing:<\/b><span style=\"font-weight: 400;\"> Expanding assembly, packaging and testing capabilities.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Research and development:<\/b><span style=\"font-weight: 400;\"> Supporting advanced semiconductor technologies.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Talent development:<\/b><span style=\"font-weight: 400;\"> Building the specialised workforce required by the industry.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>News Summary<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The notified scheme has an outlay of approximately Rs. 1,27,500 crore.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Government expects ISM 2.0 to attract around Rs. 4 lakh crore of cumulative investment, generate semiconductor production worth Rs. 2 lakh crore, and achieve approximately Rs. 1 lakh crore of exports during the scheme period.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The broader ecosystem is also expected to create 50,000-60,000 direct jobs, according to the Electronics and Information Technology Minister.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Investment Support<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-weight: 400;\">The Centre will provide capital support of up to <\/span><b>40%<\/b><span style=\"font-weight: 400;\"> for silicon fabrication units.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Support of up to <\/span><b>35%<\/b><span style=\"font-weight: 400;\"> will be available for compound semiconductor and discrete fabs, as well as specified display fabs and semiconductor packaging units.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Incentives will be released on a <\/span><b>pari-passu basis<\/b><span style=\"font-weight: 400;\">, meaning government support will correspond proportionately to capital invested in the project.\u00a0<\/span>\n<ul>\n<li><b><i>Pari passu<\/i><\/b><i><span style=\"font-weight: 400;\"> is a Latin phrase that means &#8220;equal footing&#8221; or &#8220;moving together in equal step&#8221;.<\/span><\/i><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">The scheme also extends support upstream. Facilities producing wafers, substrates, chemicals and gases, as well as semiconductor testing and R&amp;D facilities, can receive support of up to 30% of capital expenditure.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Manufacturers of equipment, sub-assemblies and components can receive an additional production-linked incentive of 2-10% of the bill of materials.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Support for Indian Chip-Design Start-ups<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ISM 2.0 also seeks to strengthen India&#8217;s semiconductor design ecosystem. The Centre can take minority stakes in Indian semiconductor start-ups, matching private investment to bridge funding gaps.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chip-design start-ups and MSMEs can receive seed funding of up to Rs. 15 crore, followed by government co-investment beyond that threshold.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme also provides for royalty financing, under which supported companies pay 5% of net revenue until the Government recovers 1.5 times its support.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Talent and R&amp;D<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Research and development and talent development receive support of up to 75% of project cost, according to the notified framework.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This is important because semiconductor manufacturing requires specialised skills spanning chip architecture, fabrication, packaging, equipment and materials.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India has already exceeded an earlier target of developing 85,000 semiconductor engineers in four years, against the original 10-year timeline.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Significance<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ISM 2.0 attempts to address India\u2019s semiconductor vulnerability by developing capabilities across the <\/span><b>entire value chain<\/b><span style=\"font-weight: 400;\">, rather than focusing only on fabrication.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It can strengthen supply-chain resilience, support domestic technology companies, generate skilled employment and increase India&#8217;s participation in global semiconductor production.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b><strong> <a href=\"https:\/\/economictimes.indiatimes.com\/tech\/technology\/government-notifies-rs-1-27-lakh-crore-semicon-2-0-scheme-to-boost-chip-ecosystem\/printarticle\/133645734.cms\" target=\"_blank\" rel=\"nofollow noopener\">ET<\/a> | <a href=\"https:\/\/www.thehindu.com\/business\/Industry\/govt-notifies-127500-crore-semicon-20-spells-out-eligibility-norms-sops-for-chip-ecosystem\/article71410155.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Semicon 2.0 expands under the India semiconductor mission to chip design, fabs, packaging, materials, R&#038;D and talent development with an outlay of Rs. 1.27 lakh crore.<\/p>\n","protected":false},"author":21,"featured_media":122035,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[2173,60,22,59],"class_list":["post-122019","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-india-semiconductor-mission","tag-mains-articles","tag-upsc-current-affairs","tag-upsc-mains-current-affairs","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/122019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=122019"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/122019\/revisions"}],"predecessor-version":[{"id":122092,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/122019\/revisions\/122092"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/122035"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=122019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=122019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=122019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}