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.