"India Launches Semicon 2.0 with Rs 1.27 Lakh Crore Semiconductor Outlay"
Semiconductor
a material (typically silicon) whose electrical conductivity sits between conductors and insulators, used to build transistors and integrated circuits.
Chip fabrication (fab)
the industrial process of etching circuit patterns onto silicon wafers at nanometre-scale precision to produce integrated circuits.
India's semiconductor journey has deep roots but a long history of incomplete execution. For decades, the country recognised the strategic importance of chips yet lacked the ecosystem to manufacture them at scale. The turning point came through a phased approach: first building electronics manufacturing capacity, then using that base to justify and attract semiconductor investment.
The results of the electronics manufacturing push are striking. Electronics goods production grew roughly sevenfold between 2014-15 and 2025-26, reaching ₹13.11 lakh crore. Mobile phone production rose 33 times over the same period, and smartphones became India's single largest exported commodity in FY 2025-26, surpassing petroleum products and gems and jewellery. India now manufactures 99.2 percent of the phones it uses domestically and has become the second largest mobile phone manufacturer in the world by volume. This electronics manufacturing base, supporting 2.5 million jobs, is the proof of concept that semiconductor investment now builds upon.
The formal semiconductor mission began with Semicon India 1.0 in 2021, carrying a ₹76,000 crore outlay covering chip design, fabrication, packaging, testing, equipment, materials, and talent. In July 2026, the government approved Semicon India 2.0 with a ₹1,27,500 crore outlay, structured around six pillars: chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging, research and development, and talent development. The geographic spread of approved projects is notable: 12 semiconductor projects have been approved across six states, with investment commitments exceeding ₹1.64 lakh crore. Among the approved facilities, Tata Semiconductor Assembly and Test Pvt. Ltd. is located in Assam, HCL-Foxconn Joint Venture India Chip Ltd. in Madhya Pradesh, and SicSem Pvt. Ltd. in Odisha, reflecting a deliberate effort to distribute semiconductor capacity beyond traditional industrial clusters. Three of these facilities have already begun commercial production, marking India's transition from policy intent to on-ground manufacturing reality.
Semiconductors are the foundational layer of the modern economy. A chip smaller than a postage stamp can carry billions of transistors switching billions of times per second. The global electronics industry is valued at approximately $4.3 trillion, and semiconductors underpin every segment of it, automobiles, healthcare, defence, telecommunications, and consumer electronics. The COVID-19 pandemic exposed the fragility of global supply chains when car factories shut down not for lack of steel or labour, but because chips were unavailable. This supply shock accelerated every major economy's push for domestic semiconductor capacity.
Chip manufacturing is one of the most complex industrial processes ever developed. It spans several distinct stages: chip design (creating the circuit blueprint), fabrication (etching circuits onto silicon wafers at nanometre-scale precision), assembly and test (packaging the die and verifying functionality), and advanced packaging (integrating multiple chips into a single module). …
Which one of the following pairs of semiconductor plants in India and their locations is not correctly matched?
Which one of the following pairs of semiconductor plants in India and their locations is correctly matched?
Consider the following statements regarding Semicon India 2.0:
1.It was approved in July 2026 with an outlay of ₹1,27,500 crore.
2.It is structured around six pillars, one of which is talent development.
3.Under this programme, 12 semiconductor projects have been approved across eight states.
4.The ChipIN Centre, providing centralised chip-design infrastructure, is set up at IIT Delhi.
How many of the above statements are correct?
Consider the following statements regarding the Chips to Startup (C2S) Programme:
1.It deploys Electronic Design Automation (EDA) tools across academic institutions.
2.The ChipIN Centre set up under this programme is located at C-DAC.
3.By April 2026, more than 200 chips had been taped out under this programme.
Which of the statements given above is/are correct?
With reference to India's semiconductor and electronics manufacturing sector, consider the following pairs:
1.Semicon India 1.0 outlay — ₹76,000 crore
2.Semicon India 2.0 outlay — ₹1,27,500 crore
3.Target pool of skilled semiconductor engineers — 85,000
4.EDA tools deployed across academic institutions — 500
How many of the above pairs are correctly matched?
Assertion (A): India's mobile phone manufacturing sector is considered the proof of concept for the country's broader semiconductor manufacturing ambitions.
Reason (R): India became the second largest mobile phone manufacturer in the world by volume and smartphones became its single largest exported commodity, demonstrating the viability of large-scale electronics manufacturing.
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