Context
The Centre has notified the operational framework for the ₹1.27-lakh-crore Semicon 2.0 programme, with a major focus on domestic chip design and intellectual property (IP). The programme also supports semiconductor manufacturing equipment, materials, fabrication facilities and advanced packaging.
Explanation
- Semicon 2.0 seeks to build an end-to-end domestic semiconductor ecosystem, reducing dependence on imported chips, equipment and materials.
- Government support is organised into six pillars, with three or more focused on chip design.
- Semicon 2.0 builds on the India Semiconductor Mission and rests on six pillars: design; machines and materials; fabrication plants (fabs); assembly, testing, marking and packaging (ATMP); research; and talent.
- Strategic chips for AI, compute, memory, radio frequency, power, networking and sensors are proposed to be developed domestically.
- C-DAC, under the Ministry of Electronics and Information Technology (MeitY), will invite proposals and select developers through competitive bidding.
- A separate track supports Indian fabless semiconductor companies—firms that design chips but outsource fabrication.
- Eligible firms can access Electronic Design Automation (EDA) tools, multi-project wafer fabrication, IP cores and post-silicon validation.
- Semiconductor equipment and component manufacturing can receive capital-expenditure support, strengthening the upstream supply chain.
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