Semicon 2.0 to build complete chip supply chain, eliminate fear factor for global firms
UPSC / SSC current affairs note
Why in news
India is planning the next phase of its semiconductor mission, Semicon 2.0, which will shift focus from just building fabrication plants (fabs) to creating a complete supply chain. This move aims to eliminate the 'fear factor' for global chipmakers by incentivising suppliers of chemicals, gases, materials, and equipment. The announcement was made by the CEO of India Semiconductor Mission (ISM), highlighting a strategic expansion of the ecosystem.
Background
India launched its semiconductor mission (Semicon India) in 2021 with a focus on attracting investments in fabs and display fabs. The first phase saw limited success, with only a few projects approved. Semicon 2.0 represents a broader approach to build a self-reliant chip ecosystem.
Key facts
Semicon 2.0 will incentivise suppliers of chemicals, gases, materials, and equipment, not just fabs.
The goal is to build a complete supply chain for semiconductors in India.
The initiative aims to eliminate the 'fear factor' for global chipmakers considering India.
The announcement was made by ISM CEO Sinha.
India Semiconductor Mission (ISM) is the nodal agency for the semiconductor programme.
The first phase of the mission focused primarily on attracting fab investments.
Semicon 2.0 is expected to cover the entire ecosystem from raw materials to finished chips.
The move is part of India's broader strategy to become a global semiconductor hub.
Prelims pointers
- India Semiconductor Mission (ISM)
- Semicon 2.0
- Semicon India programme
- Fabs (fabrication plants)
- Supply chain for chemicals, gases, materials, equipment
Mains angles
- Discuss the significance of Semicon 2.0 in making India a global semiconductor hub.
- Critically examine the challenges in building a complete semiconductor supply chain in India.
- Analyse the role of government incentives in attracting global chipmakers and suppliers.