ISM 2.0 to target 4-5 new fabs with revamped incentives
UPSC / SSC current affairs note
Why in news
MeitY Secretary S Krishnan detailed the strategy behind India Semiconductor Mission (ISM) 2.0, which aims to establish 4-5 new fabrication units with revamped incentives. The announcement comes as India seeks to boost domestic semiconductor manufacturing and reduce import dependence.
Background
The India Semiconductor Mission (ISM) was launched in 2021 with a ₹76,000 crore outlay to develop a semiconductor ecosystem. ISM 1.0 focused on setting up fabs and display fabs, but progress has been slow. ISM 2.0 is a revised version with calibrated incentives and expanded scope.
Key facts
ISM 2.0 targets 4-5 new semiconductor fabrication units (fabs).
Incentives will be calibrated across different technology nodes (legacy to advanced).
Design Linked Incentive (DLI) 2.0 will be expanded to include large companies and Overseas Citizens of India (OCIs).
A venture capital (VC) co-investment model will be introduced to support semiconductor startups.
Legacy nodes (e.g., 28nm, 45nm) will be prioritized for immediate manufacturing needs.
The revamped scheme aims to attract global semiconductor players to set up fabs in India.
MeitY Secretary S Krishnan outlined the strategy in a recent interview.
Prelims pointers
- India Semiconductor Mission (ISM): launched in 2021 under MeitY.
- ISM 2.0: revised version with new incentives and targets.
- Design Linked Incentive (DLI) scheme: supports semiconductor design startups.
- DLI 2.0: expanded to large companies and OCIs.
- VC co-investment model: government co-invests with venture capital in semiconductor startups.
- Legacy nodes: older technology nodes (e.g., 28nm, 45nm) used for automotive, industrial applications.
- MeitY: Ministry of Electronics and Information Technology.
Mains angles
- GS3: Science and Technology – developments in semiconductor manufacturing and government initiatives.
- GS3: Economic Development – impact of ISM 2.0 on India's electronics manufacturing and import substitution.
- GS2: Government Policies and Interventions – analysis of incentive design and implementation challenges.
- GS3: Indigenization and technology transfer – role of VC co-investment in fostering innovation.