Science ยท GS3
India Semiconductor Mission 2.0
One line
The Union Budget announced India Semiconductor Mission 2.0 with a focus on equipment, materials, Indian intellectual property, supply chains, research, and skills.
Summary
The next phase moves beyond attracting fabrication plants towards deeper domestic capability across design, equipment, materials, and talent. The Budget provided Rs 1,000 crore for FY 2026-27, while execution depends on later programme rules and projects.
PYQ pattern
UPSC tests semiconductor policy through strategic supply chains, research, skills, and import dependence. Review the official UPSC question-paper archive.
Core notes
- Semiconductor equipment and materials are upstream inputs with high technological barriers.
- Full-stack Indian intellectual property can include processor architecture, reusable design blocks, and system designs.
- A Budget provision authorises planned spending subject to the appropriation process. It is not proof of completed investment.
Prelims lens
- India Semiconductor Mission operates under the Ministry of Electronics and Information Technology.
- Chip design, fabrication, assembly, testing, and packaging are distinct stages.
- Safe-harbour tax rules and manufacturing incentives are separate policy instruments.
MCQ 1
Which activity is upstream in the semiconductor value chain?
- A. Manufacturing lithography equipment
- B. Retailing finished smartphones only
- C. Collecting highway tolls
- D. Procuring food grains
Reveal answerHide answer
A
Semiconductor equipment and materials enable wafer fabrication and are upstream industrial capabilities.
MCQ 2
Consider the following statements:
- ISM 2.0 includes a stated focus on equipment and materials.
- A Budget announcement alone proves that every planned facility is operational.
- A. 1 only
- B. 2 only
- C. Both 1 and 2
- D. Neither 1 nor 2
Reveal answerHide answer
A
The focus was announced, but implementation and production require subsequent action.
Mains
Question, 10 marks, 150 words: Why is domestic semiconductor capability harder than establishing a few fabrication plants?
Approach:
- Map design, tools, materials, fabrication, and packaging.
- Discuss scale, learning, intellectual property, and skills.
- Examine fiscal cost, technology cycles, and market demand.
- Suggest research centres, supplier development, procurement, and partnerships.