India Semiconductor Mission 2.0 — UPSC current affairs 19 September 2026

Union Ministry of Electronics and IT announced the transition from ISM 1.0 to ISM 2.0 at SEMICON India 2026.

ATMP / OSAT

Assembly, Testing, Marking, and Packaging / Outsourced Semiconductor Assembly and Test units that convert silicon wafers into finished chips.

EDA Tools

Electronic Design Automation software used by engineers to design, simulate, and verify integrated circuits before fabrication.

Launched in 2021 under Digital India Corporation with a outlay of Rs 76,000 crore to build a sustainable semiconductor ecosystem in India.
Functioned as a specialized business division under the Ministry of Electronics and Information Technology (MeitY) to approve financial assistance for semiconductor fabs, display fabs, and compound semiconductor packaging.

Structure: Built across six operational pillars—Chip Design, Semiconductor Machines and Materials, Fabs Expansion, ATMP/OSAT Strengthening, R&D, and Talent Development.
Design Focus: Aims to foster over 200 indigenous chip design startups backed by Electronic Design Automation (EDA) tool access to develop homegrown intellectual property.
Upstream Supply Chains: Expands scope to local manufacture of specialized chemicals, equipment, and machinery required in chip fabrication.

Moves India up the value chain from basic assembly/testing to semiconductor intellectual property creation and upstream equipment manufacturing.
Mitigates single-geography reliance and global supply chain disruptions for critical electronic components.

India Semiconductor Mission is implemented by Digital India Corporation under MeitY.

Analyze the strategic and economic significance of expanding the India Semiconductor Mission into upstream equipment and tool design.

Source: PIB

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