SEMICON 2.0 (Science and Technology)

SEMICON 2.0 (Science and Technology)

SEMICON 2.0 (Science and Technology)

Why In News:

The Union Cabinet approved SEMICON 2.0 with an outlay of Rs 1,27,500 crore, aimed at building a complete semiconductor ecosystem in India and reducing import dependence.

This builds on the India Semiconductor Mission (ISM) 1.0, launched in 2021 with an outlay of Rs 76,000 crore under the Semicon India Programme.

Source: The Indian Express, Page 7, 16 July 2026, 'Eye on supply chain, Cabinet approves Rs 1.27 lakh crore semiconductor push'; The Hindu, Page 13, 16 July 2026, 'Cabinet okays Semicon 2.0, mobile, urea manufacturing schemes, highways'

The Six Pillars of SEMICON 2.0

Design: Focus on developing indigenous chip designs and semiconductor intellectual property (IP) to make India a global design hub.

Machines and Materials: Promote domestic manufacturing of semiconductor equipment, chemicals, gases, and materials to build a complete supply ecosystem.

More Fabs (Fabrication Plants): Encourage setting up of additional semiconductor fabrication units in India to boost chip manufacturing capacity.

ATMP/OSAT: Strengthen assembly, testing, marking, and packaging facilities(ATMP), positioning India as a global hub for semiconductor backend operations.

R&D: Enhance research and development for advanced semiconductor technologies and next-generation nodes.

Talent Development: Expand training and skill development in semiconductor design, fabrication, and related ecosystem areas to build a strong workforce.

Institutional Architecture

* India Semiconductor Mission 2.0 seeks to establish India as a dependable and competitive hub in the global semiconductor value chain, while promoting the vision of Aatmanirbhar Bharat and Make in India–Make for the World.

○ To support this initiative, a budget allocation of ₹1,000 crore has been earmarked for FY 2026–27.