India Semiconductor Mission 2.0 Aims for Broader Electronics Manufacturing Ecosystem
The Union Cabinet approved Phase II of the India Semiconductor Mission (ISM) and the Mobile Phone Manufacturing Scheme (MPMS) with outlays of ₹1.27 lakh crore and ₹62,500 crore respectively. ISM 2.0 expands beyond the first phase's focus on capital subsidies to cover a broader electronics manufacturing ecosystem, including chip design talent, capital machinery, semiconductor-grade chemicals, and R&D. While capital subsidies are trimmed to 30-40%, the government expects ₹4 lakh crore investment, ₹2 lakh crore production, and ₹1 lakh crore exports over five years. The goal is to integrate India more tightly with global electronics value chains, progressing from legacy 28nm chips to frontier nodes and fostering domestic intellectual property.
Key Points
- ISM 2.0 and MPMS have been approved with significant outlays to boost India's electronics manufacturing.
- ISM 2.0 expands its scope to include chip design, capital machinery, chemicals, and R&D, beyond just capital subsidies.
- The government aims for substantial investment, production, and exports, while reducing capital subsidies to 30-40%.
- The mission seeks to integrate India into global electronics value chains, moving towards advanced chip technologies and domestic IP.
Exam Facts
- Scheme: India Semiconductor Mission (ISM) Phase II, Mobile Phone Manufacturing Scheme (MPMS)
- ISM 2.0 outlay: ₹1.27 lakh crore
- MPMS outlay: ₹62,500 crore
- Expected investment: ₹4 lakh crore
- Expected production: ₹2 lakh crore
- Expected exports: ₹1 lakh crore (over five years)
- Capital subsidy (ISM 2.0): 30-40%
- Targeted chip node: 28nm (legacy), with future progression to frontier nodes
- Union IT Minister: Ashwini Vaishnaw
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