The Union Cabinet has approved Semicon 2.0, the next phase of India’s semiconductor mission. Notably, it carries an outlay of ₹1.27 lakh crore. The Cabinet cleared it on 15 July 2026. Moreover, it aims to make India self-reliant in producing indigenous chips.
Key Highlights of Semicon 2.0
- Outlay: ₹1.27 lakh crore
- Expected investment: About ₹4 lakh crore
- Target production value: About ₹2 lakh crore during the scheme period
- Structure: Six pillars, starting with chip design
Furthermore, the scheme covers the full value chain. For example, it supports design, development and manufacturing. Also, it backs suppliers of raw materials such as minerals and specialty gases.
Lessons From Semicon 1.0
The first India Semiconductor Mission (ISM) had an outlay of ₹76,000 crore. Under it, the government approved 12 projects. Together, these attracted about ₹1.64 lakh crore in investment. For instance, Tata Electronics is building a major fab in Dholera, Gujarat. Similarly, several assembly and testing units are coming up. So, Semicon 2.0 builds on this base.
Why Semiconductors Matter
Chips power phones, cars, computers and defence systems. However, India imports almost all of its chips today. Also, global supply is concentrated in a few places, like Taiwan. Therefore, domestic production boosts both economic and strategic security.
Key Terms
- Fab: A plant that makes chips on silicon wafers.
- ATMP/OSAT: Units that assemble, test and package chips.
- Chip design: Creating the layout and logic of a chip. Notably, India already has a large pool of chip designers.
Why Semicon 2.0 Matters for UPSC and UKPSC
Notably, semiconductors are a top economy and technology topic. So, remember the outlay, the investment target and the ISM 1.0 figures. Also, link the mission with Make in India. For official updates, also visit the India Semiconductor Mission. Next, for a related story, read about India’s first hydrogen train.
So, are you preparing for the UKPSC Upper PCS 2026 prelims? Then join our UKPSC 2026 Prelims Test Series for regular practice.