India’s Semiconductor And AI Ecosystem: Key Developments
Source: PIB
GS III: Science and Technology
Overview
- India is developing a converged semiconductor–AI ecosystem covering chip manufacturing, design, AI computing, indigenous models and responsible AI.
- Semicon 2.0 is expanding domestic capabilities across fabrication, advanced packaging, equipment, materials, R&D and skilled talent, supporting supply-chain resilience and value addition.
- Initiatives such as C2S, DLI and IndiaAI are strengthening domestic chip-design capabilities, AI research, startups and technology development.
- International partnerships are helping integrate Indian companies and capabilities into global technology and semiconductor value chains.
- The combined semiconductor and AI push can strengthen technological sovereignty, innovation, strategic autonomy and high-value employment, supporting the vision of Viksit Bharat.
Why in the News?
The PIB highlights India’s progress in building an integrated ecosystem for semiconductors and Artificial Intelligence (AI), covering chip manufacturing, design, AI computing, indigenous AI models and responsible AI.
News in Brief
- India is expanding its semiconductor ecosystem across chip design, fabrication, advanced packaging, equipment, materials, research and talent development.
- Approved projects cover silicon and compound semiconductor fabs, display fabrication and advanced packaging, marking a shift from policy support towards commercial production.
- Initiatives such as Chips to Startup (C2S) and the Design Linked Incentive (DLI) Scheme are strengthening domestic chip-design capabilities and developing skilled talent.
- India is building sovereign AI computing capacity, indigenous foundation models and an open digital backbone through AI Kosh, while promoting responsible and inclusive AI development.
Semiconductors – Self Reliance Push
India is building domestic capabilities across the semiconductor value chain, from chip design and fabrication to advanced packaging, equipment and materials.
- Semicon India Programme– Semicon 1.0 laid the foundation for a domestic semiconductor ecosystem, while Semicon 2.0 seeks to scale it towards global ecosystem leadership.
- Six strategic pillars- Semicon India 2.0 focuses on chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging, research and development, and talent development.
- From Policy to Production- Semiconductor projects now span silicon and compound semiconductor fabs, display fabrication and advanced packaging, with commercial production marking the transition from semiconductor policy to manufacturing.
- Strategic Significance- The integrated approach strengthens supply-chain resilience, expands domestic value addition and positions India for future semiconductor leadership.
Indigenous Semiconductor Design Capabilities
- Semiconductor Skilling- The Chips to Startup (C2S) programme is expanding access to semiconductor design training and Electronic Design Automation (EDA) tools across academic institutions.
- Design Support- The Design Linked Incentive (DLI) Scheme provides financial and EDA-tool support to semiconductor design projects, startups and MSMEs.
- Growing Design Capacity- Chips taped out and fabricated at different nodes demonstrate the emergence of domestic chip-design capabilities.
- Future Focus- Semicon 2.0 will further support semiconductor IP, chip and system designs, strengthening India’s potential as a global semiconductor design hub.
Global Partnerships
- International Collaboration– Partnerships with Japan, US, Singapore, the Netherlands, Germany and the EU are strengthening semiconductor technology cooperation and ecosystem development.
- Global Semiconductor Engagement– Semicon India 2025 strengthened India’s engagement with the global semiconductor ecosystem and facilitated collaboration with international stakeholders.
- Industry Cooperation- MoUs focused on product development, services and semiconductor skill development, supporting greater integration of Indian companies into global value chains.
- Strategic Significance- Such partnerships can accelerate technology transfer, skill development and domestic ecosystem capabilities, while integrating India into global semiconductor value chains.
Semiconductor facilities will supply critical components for automobiles, telecommunications, aerospace, power electronics and consumer electronics.
IndiaAI Mission
- The Mission`s ambition is focused on building capabilities that are secure, inclusive and rooted in Indian needs.
- It aims to make AI a strategic capability for innovation, economic growth and public service delivery.
- Sovereign AI Computing- Shared AI computing infrastructure is being expanded to provide affordable high-performance computing for AI development, training, testing and research, particularly benefiting researchers, startups and innovators.
- Indigenous Foundation Models-The Mission is supporting indigenous foundation models, including Large Multimodal Models and Small Language Models, with a focus on Indian languages, needs and contexts.
- Digital Backbone- AI Kosh provides datasets and AI models to researchers, developers and innovators that help them to access critical resources for building and scaling AI solutions.
- From Innovation to Governance- IndiaAI initiatives are taking AI from research to practical deployment through AI prototypes, public-sector solutions, hackathons and innovation challenges.
- AI Centres of Excellence- AI CoEs are strengthening domain-specific research, innovation and application development, while Technology Innovation Hubs support AI, robotics, cybersecurity and quantum technologies.
- Responsible AI– The Safe & Trusted AI, pillar of the IndiaAI Mission, addresses concerns such as bias, deepfakes, privacy, machine unlearning and AI risk assessment.
- AI Infrastructure- Expansion of data-centre capacity is supporting the growing computational requirements of India’s AI ecosystem.
- Global Positioning- India’s growing AI ecosystem, international partnerships and participation in initiatives such as Pax Silica complement its efforts towards a self-reliant and globally competitive AI ecosystem.
Conclusion
India’s Semiconductor and AI push marks a shift towards technology self-reliance and global competitiveness.
By strengthening chip manufacturing, indigenous design, AI infrastructure and responsible AI, India can strengthen strategic autonomy, innovation and high-value employment, contributing to the vision of a Viksit Bharat.
UPSC Prelims and Mains Practice Question
With reference to India’s semiconductor ecosystem, consider the following statements:
- Semiconductor projects approved in India include silicon and compound semiconductor fabs.
- Advanced packaging is one of the strategic pillars of Semicon 2.0.
- India has developed semiconductor design capabilities through initiatives such as C2S and DLI.
- India’s semiconductor programme is limited to chip fabrication and does not cover equipment or materials.
Which of the statements given above is/are correct?
A. 1, 2 and 3 only
B. 1 and 4 only
C. 2 and 3 only
D. 1, 2, 3 and 4
Answer: A. 1, 2 and 3 only
Mains Practice Question
Q. India’s Semiconductor and AI strategies are increasingly converging to create technological self-reliance. Discuss the opportunities and challenges in building an integrated semiconductor-AI ecosystem in India. (250 Words)
Daily Current Affairs: Click Here