'Semicon 2.0 to drive investment for chips', Pg14

Key Highlights:

• Semicon 2.0 is set to attract significant investment for advanced chip development, particularly for Artificial Intelligence.
• The program, with a budget of Rs 1.27 lakh crore, prioritizes chip design by Indian companies.
• Incentives under Semicon 2.0 will be provided to Indian chip-making firms against equity.
• S Krishnan, Secretary of the Ministry of Electronics and IT, emphasized the need for substantial investment, potentially thousands of crores, for high-end chip design.
• The existing Design-Linked Incentive (DLI) Scheme offers about Rs 15 crore, which is insufficient for advanced chip design requiring over Rs 1,000 crore.

Detailed Insights:

• Semicon 2.0 aims to bridge the funding gap for complex chip design, moving beyond the limitations of previous incentive structures.
• The equity-based incentive model is designed to encourage larger, long-term investments from both domestic and international players.
• Prioritizing indigenous chip design is crucial for India's strategic autonomy in critical technology sectors.
• This initiative aligns with India's broader vision to establish itself as a global hub for semiconductor manufacturing and design.
• Advanced chips are foundational for the growth of emerging technologies like Artificial Intelligence, high-performance computing, and the Internet of Things.

Key Concepts Involved:

• Semicon India Program: A comprehensive government initiative to promote semiconductor and display manufacturing ecosystem in India.
• Design-Linked Incentive (DLI) Scheme: A government scheme offering financial incentives and design infrastructure support for semiconductor design.
• Semiconductor Manufacturing: The process of fabricating integrated circuits (chips) from raw materials like silicon.
• Artificial Intelligence (AI): A field of computer science focused on creating machines that can perform tasks typically requiring human intelligence.