Context: The article examines Semicon 2.0 as India’s long-term policy framework for developing domestic capabilities across semiconductor design, manufacturing, packaging, materials, research and skills.
Source: “Cabinet approves Semicon 2.0 – Government delivers on its commitment for a long-term policy support to Semiconductors in India,” Prime Minister’s Office, July 15, 2026. Official release
Core Points
- The Union Cabinet approved Semicon 2.0 with a budgetary outlay of ₹1,27,500 crore.
- Its six pillars cover chip design; semiconductor machinery and materials; additional fabrication plants; advanced packaging; research and development; and talent creation.
- Incentives will extend to companies producing specialised machinery, chemicals, gases and materials required by semiconductor plants.
- India intends to attract silicon, compound-semiconductor, discrete-component and display fabrication facilities.
- The programme will encourage advanced Assembly, Testing, Marking and Packaging and Outsourced Semiconductor Assembly and Test technologies.
- Research support will seek to move beyond the 28–110 nanometre range towards more advanced process nodes and technologies.
- Under Semicon 1.0, 12 manufacturing units involving cumulative investment exceeding ₹1.64 lakh crore were approved. Three had begun commercial production by the announcement date.
- The policy combines industrial-development objectives with supply-chain resilience and reduced dependence on geographically concentrated production.
Prelims Relevance
- A semiconductor fabrication plant manufactures circuits on wafers, while an OSAT facility packages and tests fabricated chips.
- Compound semiconductors use two or more elements and can offer advantages in power electronics, radio-frequency systems and optoelectronics.
- Electronic Design Automation tools are used to design, simulate and verify integrated circuits.
Mains Relevance
- GS III — Semiconductor technology, industrial policy, supply-chain resilience and technological self-reliance.
- GS II — Government intervention in strategic industries and collaboration among the Union, states, universities and private enterprises.
Supporting Fact Box
- A process node, expressed in nanometres, identifies a semiconductor manufacturing generation; it is no longer a literal measurement of every transistor feature.
- Silicon carbide and gallium nit nitride are important for high-voltage and high-temperature applications, including electric vehicles and renewable-energy systems.
- Semiconductor fabrication requires highly controlled clean rooms, uninterrupted electricity and ultra-pure water.
- Packaging electrically connects a chip to the wider device while protecting it from physical and environmental damage.
Related PYQ
- UPSC Civil Services Mains 2025, GS Paper III: “India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India? Mention the salient features of the India Semiconductor Mission.”
- Relevance: Semicon 2.0 updates the mission, its implementation record and the policy response to ecosystem-level constraints.