What goals does Semicon 2.0 aim to achieve?, Pg14

Key Highlights:

• The Union Cabinet approved the second phase of the India Semiconductor Mission (ISM) and the Mobile Phone Manufacturing Scheme (MPMS) on July 15.
• Semicon 2.0 has an outlay of ₹1.27 lakh crore, while MPMS has an outlay of ₹62,500 crore.
• The schemes aim to encourage semiconductor fabrication, assembly, packaging, and mobile phone manufacturing in India.
• Over five years, the government expects ₹4 lakh crore in investment, ₹2 lakh crore in production, and ₹1 lakh crore in exports.

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Detailed Insights:

• The first phase of ISM was approved in December 2021 with an outlay of ₹76,000 crore.
• Phase 1 offered up to 50% capital subsidy for large projects, such as Micron's memory chip facility in Sanand, Gujarat.
• Semicon 2.0 expands its scope to include chip design talent, capital machinery, semiconductor-grade chemicals and gases, and research and development.
• Capital subsidies under Semicon 2.0 will be reduced to 30-40%, with less government support for land acquisition.
• Phase 1 resulted in the approval of 12 manufacturing and packaging units, including nine semiconductor packaging units, one silicon fabrication unit, and one gallium-nitride Micro LED display fabrication unit.
• Tata Electronics is set to commence commercial production from its fabrication unit in 2028.
• A Design-Linked Incentive (DLI) program under Phase 1 approved 24 projects and provided free semiconductor design software to universities and startups.
• India's focus on semiconductor manufacturing is driven by the need for supply chain resilience, highlighted by COVID-19 disruptions and global trade tensions.
• The current focus is on 28nm "legacy" process node chips, with an aim to advance to "frontier" nodes through domestic IP and research.
• MPMS seeks to incentivize domestic phone assembly, component manufacturing, and the development of Indian-designed handsets.

Key Concepts Involved:

• India Semiconductor Mission (ISM): A government initiative to foster a robust semiconductor manufacturing and design ecosystem within India.
• Mobile Phone Manufacturing Scheme (MPMS): A scheme designed to boost domestic mobile phone assembly, component production, and indigenous design capabilities.
• Process Node: Refers to the manufacturing technology size of transistors on an integrated circuit, indicating its performance and power efficiency.
• Design-Linked Incentive (DLI): A government scheme offering financial incentives to companies for designing and manufacturing electronic products in India.