The Union Cabinet on Wednesday approved India’s second iteration of the Semiconductor
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims + Mains·
Why in news
The Union Cabinet approved the India Semiconductor Mission 2.0 (ISM 2.0) with a ₹1.27 lakh crore outlay to bolster domestic chip manufacturing and design.
Background
The ISM 2.0 initiative involves a total outlay of ₹1.27 lakh crore to subsidize chip manufacturing supply chains and research. It targets manufacturing chips for 70-75% of domestic applications by 2029 and aims for India to become a top global semiconductor nation by 2035.
Facts for Prelims
- FactISM 2.0 total outlay is ₹1.27 lakh crore
- FactTarget: Manufacture chips for 70-75% of domestic applications by 2029
- FactLong-term goal: Become a top global semiconductor nation by 2035
- SchemeISM 2.0 provides research subsidies over a six-year period
For Mains
Q. Discuss the significance of the India Semiconductor Mission 2.0 in achieving 'Atmanirbhar Bharat' and reducing India's dependence on global electronics supply chains.
Dimensions to cover in your answer
- Supply chain resilience: Reducing vulnerability to geopolitical disruptions in the global semiconductor value chain
- R&D ecosystem: Bridging the gap between domestic design capabilities and high-end fabrication infrastructure
- Fiscal trade-offs: Balancing heavy capital subsidies with the need for long-term private sector viability
Keywords: Value addition · Supply chain resilience · Strategic autonomy · Fiscal subsidy · Technological sovereignty
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