What happened
The Union Cabinet has approved the second phase of the India Semiconductor Mission and the Mobile Phone Manufacturing Scheme. The package is meant to expand domestic electronics manufacturing, attract private investment, and raise production and exports over a five-year horizon.
Background and earlier position
The first phase of the semiconductor mission began in 2021. It focused on initial fabrication and packaging capacity. The government had already approved 12 manufacturing and packaging projects, mostly packaging units, and 24 design-linked incentive projects.
The earlier phase also offered free access to expensive chip-design software for universities and startups. That support helped seed the ecosystem, but India still lacked the broader supply chain needed for a mature semiconductor industry.
What changed now
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