Semiconductoe mission 2.0 gets cabinet nod, Pg1

Key Highlights:

• The Union Cabinet approved the Semicon India Programme 2.0 with an outlay of ₹1.27 lakh crore on July 15, 2026.
• The program focuses on subsidizing the entire supply chain around chip manufacturing, extending beyond just fabrication.
• It aims to attract investments in materials, chemicals, gases, and equipment crucial for semiconductor production.
• The scheme has a duration of six years and is expected to attract investments of ₹4 lakh crore.
• The initiative is designed to reduce India's reliance on imported semiconductor chips and foster a self-reliant electronics manufacturing ecosystem.

Semicon 2.0.png

Detailed Insights:

• Semicon India Programme 2.0 is the second phase of India's semiconductor development strategy, building upon the initial Semicon India Programme 1.0 launched in December 2021 with a ₹76,000 crore outlay.
• The expanded scope of Semicon 2.0 covers six strategic pillars: chip design, manufacturing equipment and inputs, new fabrication plants, advanced assembly, testing, marking and packaging (ATMP/OSAT), research, and talent development.
• Incentives under the new scheme include 40% capital expenditure subsidy for silicon fabs, 35% for other fabs, 35% for advanced packaging, and 25% for conventional packaging.
• The long-term vision aims for India to design and manufacture chips for 70-75% of domestic applications by 2029 and become a top semiconductor nation by 2035.
• The India Semiconductor Mission (ISM), operating under the Ministry of Electronics and Information Technology (MeitY), is the nodal agency responsible for implementing this program.
• This initiative aligns with national goals such as Digital India, Make in India, and Atmanirbhar Bharat, promoting domestic value addition and technological sovereignty.

Key Concepts Involved:

• Semiconductor: A material with electrical conductivity between a conductor and an insulator, forming the fundamental component of electronic devices.
• Fabrication Plant (Fab): A highly specialized facility where semiconductor devices, such as integrated circuits, are manufactured.
• ATMP (Assembly, Testing, Marking, and Packaging) / OSAT (Outsourced Semiconductor Assembly and Test): The final stages of semiconductor manufacturing, involving the assembly, testing, and packaging of chips into functional products.
• Supply Chain: The interconnected network of all entities, resources, and activities involved in producing and delivering a product, from raw materials to the end consumer.