Cabinet Approves Semicon 2.0 with ₹1.27 Lakh Crore Outlay
UPSC / SSC current affairs note
Why in news
The Union Cabinet has approved Semicon 2.0, a comprehensive scheme with a ₹1.27 lakh crore outlay to boost India's semiconductor design and manufacturing ecosystem. This builds on the momentum of Semicon 1.0 and aims to position India on the global semiconductor map.
Background
Semicon 1.0 was launched earlier to promote semiconductor manufacturing in India. Under it, 12 manufacturing units with over ₹1.64 lakh crore investment were approved, including one silicon fab, one silicon carbide fab, one integrated GaN micro-LED display fab, and nine packaging units. Three companies—Micron, Kaynes, and CG Semi—have started commercial production.
Key facts
Semicon 2.0 approved with total outlay of ₹1,27,500 crore.
Scheme is based on six pillars: Design, Machines & Materials, More Fabs, ATMP/OSAT, R&D, and Talent Development.
Under Design pillar, 105 startups have begun chip development; focus on IP and system design to make India a leader in chip design IP.
Machines & Materials pillar incentivizes R&D for semiconductor manufacturing equipment, chemicals, and gases.
More Fabs pillar aims to attract more manufacturers for silicon fabs, compound semiconductor fabs, discrete component fabs, display fabs, etc.
ATMP/OSAT pillar encourages advanced packaging technologies in India.
R&D pillar focuses on developing advanced nodes (beyond 28nm-110nm) in collaboration with leading R&D centers.
Talent Development: 315 universities training ~68,000 students in chip design using latest EDA tools; industry to deepen clean room and fab training.
Semicon 2.0 aims to boost economic growth, strengthen supply chain, enhance national security, and establish technological leadership.
Under Semicon 1.0, 12 manufacturing units approved with total investment over ₹1.64 lakh crore; three units have started commercial production.
Prelims pointers
- Semicon 2.0: ₹1,27,500 crore outlay
- Six pillars: Design, Machines & Materials, More Fabs, ATMP/OSAT, R&D, Talent Development
- Semicon 1.0: 12 units approved, ₹1.64 lakh crore investment
- Companies started production: Micron, Kaynes, CG Semi
- First fab expected operational in 2028
- 105 startups in chip design under Semicon 2.0
- 315 universities training 68,000 students
- Ministry: Electronics and Information Technology
Mains angles
- GS3: Science and Technology – Discuss the significance of Semicon 2.0 in making India self-reliant in semiconductor manufacturing.
- GS3: Economic Development – Analyze the impact of the scheme on supply chain resilience and national security.
- GS2: Government Policies and Interventions – Evaluate the effectiveness of government initiatives in promoting high-tech manufacturing.