The "brains"—or chips—powering everything from phones to fighter jets will now be manufactured in India. On Thursday, the Central Government approved the 'Semicon 2.0' scheme. A total of ₹1,27,500 crore will be spent on this initiative. The objective is to transform India into a global hub for semiconductor design and manufacturing. Until now, India has relied on China, Taiwan, or the US for these chips. Now, chips for critical sectors—such as electronics, automobiles, telecommunications, defense, aerospace, and artificial intelligence—will be "Made in India." The benefits extend far beyond just production.
**Designing Chips and Securing Patents**
Union Minister Ashwini Vaishnaw stated that 105 startups in India are already working on chip design. The government will now support these startups to ensure that next-generation chips, systems, and their associated patents remain within India.
**Sourcing Tools and Raw Materials**
Merely setting up factories is not enough; the machinery and raw materials required for them are also essential. Chip manufacturing involves the use of highly specialized machinery, chemicals, and gases. Under Semicon 2.0, companies that manufacture these raw materials and machines within India will receive substantial incentives. This will usher in a new era of high-precision manufacturing in the country.
**What is the total amount (in crore rupees) the Central Government has decided to spend on the Semicon 2.0 scheme?**
1,50,000 crore
1,00,000 crore
2,00,000 crore
1,27,500 crore
**A Lineup of New Chip Factories**
A factory where chips are manufactured is known as a "Fab." India's first semiconductor fab is expected to become operational by 2028. The government is now placing significant emphasis on establishing various types of fabs in the country, such as silicon fabs, compound semiconductor fabs, and display fabs.
Packaging and Testing Units
Once a chip is manufactured, it is placed in a protective package and undergoes testing to ensure it does not fail after being installed in a gadget; this process is known as ATMP and OSAT. The government is striving to bring the world's most advanced technology for this packaging and testing to India and is providing financial support and assistance to companies for this purpose.
Investment in Research and New Technology
The smaller a chip is, the faster and more advanced it is considered to be. Currently, work in India is focused on 28nm to 110nm technology. However, the world is advancing. Therefore, to develop even more advanced chip technology, India will now collaborate with major research institutions both domestically and internationally.
Training for the Youth
Operating such massive facilities will require a skilled workforce, primarily drawn from the youth. Approximately 68,000 students across 315 universities in the country have already received training in modern chip design. Under this scheme, engineering students will now receive high-level training related to fabs, clean rooms, and the semiconductor industry, making them job-ready.
Semicon 1.0: Proof of Transformative Change
12 Major Projects Approved: Under Semicon 1.0, 12 manufacturing projects for chip fabrication and packaging have been approved in the country so far.
Massive Investment: These projects have attracted a total investment exceeding ₹1.64 lakh crore.
Breakdown of Projects: These include 1 silicon fab, 1 silicon carbide fab, 1 gallium nitride micro-LED display fab, and 9 packaging units.
Production Underway: Companies like Micron, Kaynes, and CG Semi have already commenced commercial chip production in India. Another major unit is set to begin operations this year.
Boost for Startups: Design projects from 24 startups and MSMEs have received direct funding from the government. Additionally, 105 startups have been provided with expensive, state-of-the-art chip design software free of cost.
How will the common man benefit from this?
Gadgets will become cheaper: When chips are manufactured in India instead of being imported, import duties and transportation costs will be saved. In the long run, this will directly impact the prices of smartphones, laptops, and cars, potentially making them more affordable.
Millions of jobs: The infusion of ₹1.27 lakh crore into the market will lead to the establishment of new factories. These facilities will provide direct employment to lakhs of young people—ranging from engineers and machine operators to personnel in logistics and marketing.
National security: Today, chips are integral to every missile, radar system, and fighter jet. Foreign-made chips carry a constant risk of hacking or data theft. Having our own chips will ensure the complete security of our military and national data.
Disclaimer: This content has been sourced and edited from News18 Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
