PIB · Government of India ·

Precision manufacturing ecosystem emerges as a key enabler for India's semiconductor industry

Distilled Policy Brief

  • India is transitioning from India Semiconductor Mission (ISM) 1.0 to ISM 2.0, focusing on six core pillars—Design, Materials & Machines, Fabs, ATMP units, R&D, and Talent—to build a comprehensive domestic semiconductor ecosystem.
  • Under ISM 2.0, the country aims to scale up to 200 domestic chip design companies, leveraging the training of 70,000 design engineers and the distribution of industry-grade Electronic Design Automation (EDA) tools to 400 engineering colleges and over 105 startups.
  • Five semiconductor manufacturing plants have already commenced commercial production in India, demonstrating cost competitiveness, quality compliance, and deep integration with MSMEs in precision manufacturing.

🎯 Prelims High-Yield Examination Points

Key pillars of India Semiconductor Mission (ISM) 2.0, the role of Electronic Design Automation (EDA) tools, and the status of domestic semiconductor fabrication and ATMP units.

⚖️ Mains Analytical & Syllabus Linkages

Analyze the strategic and economic significance of transitioning from infrastructure creation (ISM 1.0) to ecosystem integration (ISM 2.0) in achieving technological sovereignty and global supply chain resilience.

🎯 UPSC Prelims Practice Drill

Economy

With reference to the India Semiconductor Mission (ISM) and its transition from ISM 1.0 to ISM 2.0, consider the following statements: 1. ISM 2.0 focuses on six core pillars: Design, Materials & Machines, Fabs, ATMP units, R&D, and Talent. 2. Under ISM 2.0, India aims to scale up to 200 domestic chip design companies, supported by the distribution of Electronic Design Automation (EDA) tools to engineering colleges and startups. 3. Five semiconductor manufacturing plants have already commenced commercial production in India. Which of the statements given above are correct?

  • [A] 1 and 2 only
  • [B] 2 and 3 only
  • [C] 1 and 3 only
  • [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [D] 1, 2 and 3

All three statements are correct. ISM 2.0 transitions from building basic infrastructure to scaling up the industry across six core pillars: Design, Materials & Machines, Fabs, ATMP units, R&D, and Talent. It aims to nurture 200 domestic chip design companies by distributing EDA tools to 400 engineering colleges and over 105 startups. Additionally, five semiconductor manufacturing plants have already commenced commercial production in India.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 2021

Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.

📚 Static Syllabus & Constitutional Linkages

Semiconductor Value Chain: Understanding the stages of semiconductor manufacturing: Design (EDA), Fabrication (Fabs), and Assembly, Testing, Marking, and Packaging (ATMP) as covered in standard science and economic geography curricula.