Cabinet Approves Semicon 2.0 with ₹1,27,500 Crore Outlay
UPSC / SSC current affairs note
Why in news
The Union Cabinet has approved Semicon 2.0, a comprehensive policy with a ₹1,27,500 crore outlay to boost India's semiconductor design and manufacturing ecosystem. This builds on the success of Semicon 1.0 and aims to position India as a global semiconductor hub.
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 budget of ₹1,27,500 crore.
Six pillars: Design, Machines & Materials, More Fabs, ATMP/OSAT Industry, R&D, and Talent Development.
105 startups already developing chips under the design pillar.
First fab expected to become operational in 2028.
315 universities training ~68,000 students in chip design using latest EDA tools.
Semicon 1.0 approved 12 manufacturing units with over ₹1.64 lakh crore investment.
Three companies (Micron, Kaynes, CG Semi) have started commercial production; one more expected in 2026.
Prelims pointers
- Semicon 2.0
- ₹1,27,500 crore
- Six pillars: Design, Machines & Materials, More Fabs, ATMP/OSAT, R&D, Talent Development
- First fab operational by 2028
- 105 chip design startups
- 315 universities, 68,000 students trained
- Semicon 1.0: 12 units, ₹1.64 lakh crore investment
- Micron, Kaynes, CG Semi started production
Mains angles
- Discuss the significance of Semicon 2.0 in making India a global semiconductor hub.
- Critically examine the challenges in India's semiconductor ecosystem and how Semicon 2.0 addresses them.
- Analyze the role of government policy in promoting high-tech manufacturing and its impact on economic development and national security.