SYLLABUS
GS-3: Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology and issues relating to intellectual property rights.
Context: India is building an integrated semiconductor and artificial intelligence ecosystem to strengthen technological self-reliance, supply-chain resilience, innovation and its position as a global technology hub.
India’s Semiconductor Ecosystem
- The India Semiconductor Mission (ISM) was launched in December 2021, with the Semicon 1.0 programme receiving an outlay of ₹76,000 crore to build India’s semiconductor ecosystem covering chip design, fabrication, packaging, testing, equipment, materials and skilled talent.
- Semicon 2.0 was approved in July 2026 with an outlay of ₹1,27,500 crore, expanding the focus to chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging, research and development, and talent development.
- Manufacturing and Design Capabilities: 12 semiconductor projects have been approved across six states, involving investment commitments of more than ₹1.64 lakh crore, with three facilities already commencing commercial production.
- The projects cover silicon and compound semiconductor fabrication, display fabrication and advanced packaging, supporting sectors such as automobiles, telecommunications, aerospace, power electronics and consumer electronics.
- Indigenous Chip Design: The Design Linked Incentive (DLI) Scheme was launched in December 2021, while the Chips to Start-up (C2S) Programme was launched in 2022 to strengthen indigenous semiconductor design and skilling.
- Seven chips have been successfully fabricated from 16 tape-outs, including designs at advanced 12-nanometre nodes.
- Global Partnerships: India’s semiconductor ambitions are supported by partnerships with the United States, Japan, Singapore, the Netherlands, Germany and the European Union.
- Semicon India 2025 brought together more than 350 exhibitors and participants from 48 countries and regions, with 12 Memorandums of Understanding announced.
India’s Artificial Intelligence Ecosystem
- The IndiaAI Mission was approved in March 2024 with an outlay of ₹10,371.92 crore over five years to build a robust and inclusive AI ecosystem.
- The Mission has seven pillars covering AI compute, foundation models, AI datasets, application development, future skills, startup financing, and safe and trusted AI.
- AI Compute and Infrastructure: Shared computing capacity has expanded to 45,000+ GPUs, providing affordable access to high-performance computing for Indian startups, researchers and academia and helping democratise AI innovation.
- AI-ready Data and Multilingual AI: AIKosh provides access to AI-ready datasets and AI models, while Bhashini provides multilingual datasets and language technologies to support AI applications across India’s linguistic diversity.
- Indigenous AI Capabilities: India is supporting indigenous foundation models, including initiatives such as BharatGen, to develop multilingual and multimodal AI suited to Indian languages, needs and contexts.
- Responsible AI, Research and Skills: Under the Safe & Trusted AI pillar, projects address bias, deepfakes, privacy, explainability and AI risks, while 58 Artificial Intelligence Centres of Excellence and 543 Data & AI Labs are being developed to strengthen AI research and skills.
Significance of the Semiconductor & AI Revolution
- Technological Self-Reliance and Resilience: Domestic semiconductor manufacturing, indigenous chip design and AI capabilities can reduce foreign dependence and strengthen supply-chain resilience.
- Strategic and Economic Significance: Semiconductors are critical for key sectors, while AI is increasingly important for research, innovation, governance and public-service delivery.
- Innovation and Employment: Access to EDA tools, GPUs, datasets, AI infrastructure and research facilities can lower entry barriers and create high-value employment.
- Global Technology Leadership: Integrating chip manufacturing, indigenous design, advanced computing, AI models, data and research can strengthen India’s technological capabilities and support the vision of Viksit Bharat.
Challenges of the Semiconductor & AI Revolution
- Global Supply-Chain Dependence: India remains dependent on global supply chains for critical semiconductor equipment, materials and advanced AI computing hardware.
- High Capital and Infrastructure Requirements: Semiconductor fabrication and advanced AI require large investments in manufacturing, data centres, computing, energy and specialised infrastructure.
- Technology and Talent Gaps: India needs deeper capabilities in semiconductor fabrication, advanced packaging, AI research, chip design and high-performance computing.
- Data and Responsible AI Risks: Limited AI-ready data, privacy concerns, algorithmic bias, deepfakes, misinformation and cybersecurity risks can constrain safe AI adoption.
Way Forward
- Build an End-to-End Ecosystem: India should strengthen the semiconductor value chain from design and fabrication to packaging, testing, equipment and materials while integrating it with AI.
- Strengthen Indigenous Capabilities: Greater focus should be placed on developing GPUs, processors, accelerators, semiconductor equipment, intellectual property and advanced AI technologies to reduce strategic dependence.
- Expand Research and Talent: Stronger collaboration among government, industry, universities, startups and research institutions is required to build deep-tech capabilities and future-ready skills.
- Promote Trusted Global Integration: India should deepen international partnerships for technology, investment, supply-chain resilience, research and global standards while focusing on responsible and secure AI.