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19 July 2026

India Semiconductor Mission 2.0

The India Semiconductor Mission 2.0 is a major national flagship policy aimed at technological self-reliance and economic growth, making it a highly probable topic for direct questions in GS3 and GS2.

2 min read Day 6 of 10 2 questions 2 prelims

Notes

  • India Semiconductor Mission (ISM) 2.0: Union Cabinet approved with an outlay of ₹1.27 lakh crore.
  • Mobile Phone Manufacturing Scheme (MPMS): Approved with an outlay of ₹62,500 crore.
  • ISM 2.0 Objectives: Encouraging semiconductor fabrication, assembly, and packaging; expanding scope to include chip design talent, capital machinery, chemicals, gases, and R&D.
  • Financial Targets: Expected ₹4 lakh crore investment, ₹2 lakh crore production, and ₹1 lakh crore exports over five years.
  • Subsidy Structure: ISM 2.0 will reduce capital subsidies to 30-40% compared to 50% in phase 1.
  • Phase 1 Outcomes: 12 units approved with ₹1.64 lakh crore investment; includes packaging units, one silicon fab, and one gallium-nitride Micro LED fab.
  • Technology Focus: Current focus is on 28nm 'legacy' nodes for everyday electronics, with a long-term goal of progressing to 'frontier' nodes.
  • Strategic Rationale: Mitigating supply chain risks (COVID-19, geopolitical trade wars) and integrating into global electronics value chains.
  • MPMS Incentives: Offers 2.25% to 5% incentives based on the level of local design in handsets to boost domestic R&D and component manufacturing.

Part of a longer story

This is day 6 of 10 in India Semiconductor Mission implementation, which has been running since 1 July 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Discuss the strategic significance of the India Semiconductor Mission (ISM) in the context of global supply chain resilience and India's goal of becoming a global electronics manufacturing hub. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The transition from ISM phase 1 to phase 2 reflects a shift in focus from mere assembly to building a comprehensive semiconductor ecosystem. Analyze the challenges and opportunities in fostering domestic intellectual property and frontier-node chip manufacturing in India. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. What is the primary focus of the 28nm semiconductor chips currently being targeted by the India Semiconductor Mission?

  2. Which of the following is a key change introduced in the second phase of the India Semiconductor Mission (ISM 2.0)?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-07-19/india-semiconductor-mission-2-0