Cabinet Approves India Semiconductor Mission 2.0 with Rs 1.25 Lakh Crore Outlay
UPSC / SSC current affairs note · Schemes
Why in news
The Union Cabinet has approved the second phase of India's flagship chip manufacturing program, ISM 2.0, with a massive outlay of Rs 1.25 lakh crore. This move aims to boost domestic semiconductor production and reduce import dependence, crucial for electronics and strategic sectors.
Background
The first phase, India Semiconductor Mission (ISM 1.0), was launched in December 2021 with a budget of Rs 76,000 crore. It approved 12 projects worth over Rs 1.64 lakh crore, including silicon fabs, compound semiconductors, and ATMP units. ISM 2.0 builds on this foundation.
Key facts
Union Cabinet cleared ISM 2.0 with a fiscal outlay of Rs 1.25 lakh crore.
Program lifecycle extended from 5 years to 12 years to reassure long-term investors.
ISM 2.0 shifts focus from capacity building to vertical integration of the electronics value chain.
Funds will support domestic production of semiconductor equipment, raw materials, chemicals, and gases.
A significant portion is earmarked for developing homegrown Indian Intellectual Property (IP) in chip architecture.
ISM 1.0 (Dec 2021) had a budget of Rs 76,000 crore and approved 12 projects worth over Rs 1.64 lakh crore.
The initiative covers the entire electronics value chain, from chips to finished products.
Prelims pointers
- India Semiconductor Mission (ISM) 2.0
- Outlay: Rs 1.25 lakh crore
- Program duration: 12 years
- ISM 1.0 launched: December 2021
- ISM 1.0 outlay: Rs 76,000 crore
- Projects approved under ISM 1.0: 12
- Cumulative investment under ISM 1.0: over Rs 1.64 lakh crore
- Focus areas: silicon fabs, ATMP, compound semiconductors, IP development
Mains angles
- Discuss the significance of ISM 2.0 in achieving self-reliance in semiconductor manufacturing and its impact on India's electronics ecosystem.
- Critically examine the challenges in implementing large-scale semiconductor projects in India, including infrastructure, talent, and global competition.
- Analyze the role of government schemes like ISM in promoting high-tech manufacturing and attracting foreign investment under the Make in India initiative.