What goals does Semicon 2.0 aim to achieve? | Explained
The Indian government has launched the second phase of the India Semiconductor Mission with a significant financial outlay to boost domestic chip manufacturing and electronics assembly. The program expands its scope to include chip design, capital machinery, and raw materials while adjusting capital subsidy structures to reflect a maturing industry.
Why it matters
This initiative is critical for India's ambition to become a global hub for semiconductor manufacturing and reduce reliance on foreign supply chains for essential electronics components.
O n July 15, the Union Cabinet cleared the second phase of the India Semiconductor Mission (ISM), and the Mobile Phone Manufacturing Scheme (MPMS), with a ₹1.27 lakh crore and ₹62,500 crore outlay, respectively. The programmes are aimed at encouraging the next cohort of semiconductor fabrication, assembly, and packaging facilities in India, as well as following through on encouraging more phone assembly and component manufacturing in the country. The government expects the scheme to draw ₹4 lakh crore in investment, ₹2 lakh crore in production, and ₹1 lakh crore in exports over its tenure of five years.
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