Story 3 of 11 · 7 Nov
GS3 · Science and Technology · Semiconductors and Electronics

Semicon 2.0 portal live; 12 more electronics-component projects cleared

In 30 seconds

The government has opened the portal for Semicon 2.0, the next phase of the India Semiconductor Mission, with an outlay of ₹1,27,500 crore. It also cleared 12 more projects under the Electronics Components Manufacturing Scheme. Read it to revise India’s chip mission and electronics push.

Fact File

Semicon 2.0 outlay
₹1,27,500 crore
Semicon 1.0
12 projects, ₹1.64 lakh crore
New component projects
12, worth ₹7,503 crore
Jobs from new projects
7,127
Electronic components mounted on a printed circuit board
In the news

Semicon 2.0: what happened?

Almost every gadget runs on chips. India wants more of them made at home, not shipped in.

  • The Semicon 2.0 portal is live for Pillars 2, 3 and 4, with an outlay of ₹1,27,500 crore under the India Semiconductor Mission.
  • Semicon 1.0 backed 12 projects worth ₹1.64 lakh crore; five are already producing.
  • 12 more Electronics Components Manufacturing Scheme (ECMS) applications were cleared: ₹7,503 crore investment, ₹39,045 crore production and 7,127 jobs.
  • So far the scheme has 118 applications, ₹77,051 crore investment and 81,755 jobs across 16 States, including Uttar Pradesh.
Back Story

Why does India want chips?

A semiconductor chip is the ‘brain’ of phones, cars, satellites and weapons. India imports most of its chips.

The India Semiconductor Mission (ISM) began in December 2021 under the Ministry of Electronics and IT (MeitY) to build fabs, packaging units and design skills.

The ECMS backs the smaller parts — like circuit boards and passive components — that go inside every device.

By the numbers

India’s electronics push

ItemFigure
Semicon 2.0 outlay₹1,27,500 crore
Semicon 1.0 projects12 (5 in production)
ECMS total applications118
ECMS total jobs81,755
Rulebook

Which laws and Articles apply?

  • India Semiconductor Mission: under MeitY, set up in 2021.
  • Electronics Components Manufacturing Scheme: support for electronic parts makers.
  • Production Linked Incentive (PLI) schemes: reward extra output in key sectors.
  • Make in India and Atmanirbhar Bharat: the larger policy push.
Why examiners care

Why does Semicon 2.0 matter?

AngleWhat to note
StrategicChips are needed for defence and space.
EconomyCuts the import bill.
JobsNew factories hire skilled workers.
PrelimsISM, MeitY, scheme numbers.
Fault Lines

What are the problems with Semicon 2.0?

  • Fabs need huge water, power and money.
  • Skilled engineers are still short.
  • Global firms dominate technology.
  • Long time before projects pay back.
Road Ahead

What should be done next on Semicon 2.0?

  • Train chip designers in colleges.
  • Steady power and water for fab clusters.
  • Partner with trusted countries on technology.
  • Support local design start-ups.
Exam Radar

What can Prelims ask on Semicon 2.0?

Prelims probability: Medium–High — Semicon 2.0 outlay and scheme numbers are crisp; semiconductor Prelims questions are rising.

  • ISM launched December 2021 under MeitY.
  • Semicon 2.0 outlay ₹1,27,500 crore.
  • Semicon 1.0: 12 projects, 5 in production.
  • ECMS: 118 applications in 16 States.
  • Uttar Pradesh is among the ECMS States.
Answer Lab

How to write about Semicon 2.0 in Mains

Practice question (15 marks, 250 words): Building a semiconductor ecosystem is vital for India’s economic and strategic security. Discuss with reference to Semicon 2.0.

  • Intro: Semicon 2.0 and ECMS approvals.
  • Why chips matter.
  • Progress under Semicon 1.0.
  • Challenges: cost, skills, tech.
  • Conclusion: from assembly to design.

Ready lines for your answer

GS-III Semiconductor self-reliance

  1. Whoever makes the chips shapes the future economy.
  2. Self-reliance in chips is as much about security as about trade.
Quotable data point

Semicon 2.0 outlay ₹1,27,500 crore; ECMS 81,755 jobs so far.

Photo: Soumyapatra13, CC BY-SA 3.0, via Wikimedia Commons

Exam angle

UPSC

Prelims: ISM, ECMS, MeitY. · Mains GS-III: industrial policy and technology.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

The fiscal outlay approved for Semicon 2.0 under the India Semiconductor Mission is:

Answer (b) & explanation

Semicon 2.0 carries a fiscal outlay of ₹1,27,500 crore. ₹7,503 crore is the investment figure for the latest 12 Electronics Components Manufacturing Scheme applications.

Practice · UPSC

After the latest approvals, cumulative Electronics Components Manufacturing Scheme applications stand at about:

Answer (b) & explanation

Cumulative approvals reached 118 applications, about ₹77,051 crore investment and 81,755 jobs across 16 States including Uttar Pradesh.

Quick questions

Questions students ask about this

What is Semicon 2.0?

The next phase of the India Semiconductor Mission, with an outlay of ₹1,27,500 crore.

How did Semicon 1.0 do?

It backed 12 projects worth ₹1.64 lakh crore; five are in production.

What did the new ECMS approvals bring?

₹7,503 crore investment and 7,127 jobs from 12 projects.

Which ministry runs ISM?

The Ministry of Electronics and Information Technology (MeitY).