Current Affairs16 Jul, 2026PIBSafe Workplace & Hig
GS 3: EconomyGS 3: Science & TechnologyGS 2: GovernanceGS 2: International RelationsPrelims

Safe Workplace & High Value Jobs characterise India's Chip Ecosystem as we are Emerging as Trusted Global Hub in Electronics & Semiconductor

India's ₹76,000 crore Semicon India Programme propels the nation as a trusted global chip hub, fostering high-value jobs and technological self-reliance across the value chain.

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Key Highlights:

  • India is emerging as a trusted global hub for electronics and semiconductors, driven by the Semicon India Programme.
  • Semicon India Programme 2.0 expands focus beyond chip manufacturing to strengthen the entire semiconductor value chain.
  • Electronics production increased seven-fold and exports eleven-fold over the last eleven years.
  • The Semicon India Programme (1.0) was approved in December 2021 with an outlay of ₹76,000 crore.
  • 12 semiconductor projects have been approved, with commercial production commenced at three facilities: Micron ATMP, Kaynes Semicon, and CG Power OSAT.
  • India contributes nearly 20% of the world's semiconductor design talent.
  • Initiatives like the Design Linked Incentive (DLI) Scheme and Chips to Startup (C2S) are strengthening the design and talent base.

Detailed Insights:

  • Semiconductors are foundational to modern life, with demand surging due to technologies like AI, 5G, electric mobility, and IoT.
  • India is the world's second-largest mobile phone manufacturer, providing a strong manufacturing base for the country's transition into semiconductor production.
  • The electronics manufacturing sector has generated around 25 lakh jobs, with women constituting 70% of the direct workforce in mobile manufacturing.
  • The Semicon India Programme (1.0) was implemented through the India Semiconductor Mission (ISM) to build a globally competitive ecosystem.
  • Approved projects span various segments including Silicon Fab, Compound Semiconductor Fab, Micro LED Display GaN Fab, and ATMP/OSAT facilities across six states.
  • Semicon India Programme 2.0 focuses on six strategic pillars: chip design, equipment/materials, fabrication, advanced packaging, R&D, and talent development.
  • International collaborations with countries like the US, Japan, and the EU, along with investments from global companies, are strengthening the ecosystem.
  • The program aims to enhance supply chain resilience, generate high-quality employment, and achieve technological self-reliance for Viksit Bharat.

Key Concepts Involved:

  • Semicon India Programme: A government initiative (₹76,000 crore outlay) launched in 2021 to build a globally competitive semiconductor ecosystem, implemented by the India Semiconductor Mission (ISM).
  • Design Linked Incentive (DLI) Scheme: Provides financial incentives and design infrastructure support for semiconductor design and product development.
  • Chips to Startup (C2S): An initiative to train students and develop a skilled workforce for India's semiconductor industry.
  • ATMP/OSAT: Advanced Packaging, Assembly, Test, Marking, and Packaging / Outsourced Semiconductor Assembly and Test; refers to post-fabrication processes.
  • Production Linked Incentive (PLI) Scheme: A government scheme to boost domestic manufacturing and exports across various sectors, including electronics.
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