The Union Cabinet has approved a Rs 1.27 lakh crore semiconductor package for India. The package covers chip manufacturing, packaging, and related supply chains. It matters because semiconductors sit at the centre of electronics, defence, communications, and industrial technology.
The government’s stated objectives are to reduce import dependence, strengthen domestic capacity, and attract investment into a strategically important sector. The official release also places the package within India’s wider industrial-policy push for technology manufacturing and supply-chain depth.
Background and earlier position
India has long depended on imports for semiconductors and much of the upstream electronics value chain. Semiconductor fabrication is capital intensive, needs reliable power and water, and requires deep ecosystem support in design, materials, testing, and logistics.
The current approval extends the policy direction of building a domestic semiconductor ecosystem rather than relying only on final assembly. For UPSC, the important shift is from electronics assembly toward deeper manufacturing and packaging capability.
What changed now
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