Semicon 2.0
About Semicon India Program
- Launched in 2021, the Semicon India Program aims at development of semiconductor and display manufacturing ecosystem in the country.
- The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem.
- This initiative supports various sectors of the semiconductor industry, extending beyond just fabrication facilities (fabs) to include packaging, display wires, Outsourced Semiconductor Assembly and Testing (OSATs), sensors, and other critical components, creating a comprehensive ecosystem.
- India Semiconductor Mission (ISM) has been set up as a dedicated institution under the Ministry of Electronics and Information Technology (MeitY) to implement the Semicon India Programme.
What is a semiconductor?
- A semiconductor is a small electronic chip that plays a crucial role in electronics.
- These chips can store, process and transfer information. They help devices perform tasks such as calling, storing data and even sensing signals.
- The chip consists of millions (sometimes billions) of tiny parts called transistors. Transistors are like tiny switches that allow or stop the flow of electrical signals. These work together, much like how our brain cells (neurons) and white matter work.
Global Production:
- Currently, countries like Taiwan, South Korea, Japan, China and the US dominate the semiconductor industry.
- Taiwan produces more than 60% of the world’s semiconductors, including nearly 90% of the most advanced ones.
- Such dependence on a single region has exposed global supply chains to significant risks—from pandemics and natural disasters to geopolitical tensions.
Design Linked Incentive Scheme:
- The Design Linked Incentive (DLI) Scheme is implemented under the Semicon India Programme to catalyze a strong, self-reliant chip design ecosystem by providing financial incentives and access to advanced design infrastructure for domestic startups and MSMEs.
- The DLI Scheme supports semiconductor design across the full lifecycle—from design and development to deployment—covering Integrated Circuits (ICs), chipsets, Systems-on-Chip (SoCs), systems and IP cores.
- The Centre for Development of Advanced Computing (C-DAC), a premier R&D organization of MeitY, is the nodal agency responsible for implementing the DLI Scheme.
Why in News?
- The Union Cabinet has approved Semicon 2.0, a comprehensive programme aimed at strengthening India’s semiconductor design and manufacturing ecosystem and providing long-term policy support to the sector.
- Semicon 2.0 has been designed around six key pillars covering chip design, manufacturing equipment and materials, fabrication facilities, semiconductor packaging, research and development, and talent development.