Examine the strategic and economic significance of semiconductors for India's national security and digital sovereignty.

Q. Examine the strategic and economic significance of semiconductors for India's national security and digital sovereignty. (15 marks, 250 words)

Semiconductors are the foundational input of the digital age, powering defence systems, telecom, finance and critical infrastructure. NITI Aayog's 2026 roadmap frames chips as central to India's national security, economic resilience and digital sovereignty, making self-reliance a strategic imperative, not merely an industrial goal [1].

Strategic significance (national security) - Defence and sovereignty: modern missiles, radars, avionics and cyber systems run on chips; import dependence creates a critical vulnerability, hence the push for trusted, domestic "capacity" [1]. - Supply-chain security: global chip supply is concentrated (Taiwan, South Korea); geopolitics (US-China rivalry, China+1) makes indigenization a resilience hedge [1]. - Digital sovereignty: full-stack Indian semiconductor IP and advanced nodes (3nm/2nm) reduce reliance on foreign design for AI, 5G/6G and Digital Public Infrastructure [4].

Economic significance - Value creation: roadmap targets a USD 120–150 billion domestic value chain by 2035, capturing 10–13% of the global market [1]. - Trade balance: cuts a large electronics import bill, strengthening Make in India in a high-value-add sector [1]. - Ecosystem deepening: ISM 2.0 (Union Budget 2026-27) shifts from ecosystem creation to equipment, materials and skilling, backed by ₹8,000 crore for the Modified Semicon Programme [3][4].

Semiconductors thus sit at the intersection of security and prosperity — a "strategic national capability." Realising the 2035 vision demands sustained inter-ministerial execution, trusted global partnerships and a robust talent pipeline, anchoring India's Atmanirbhar Bharat and digital-sovereignty aspirations.

(~250 words)

Sources: 1. NITI Aayog releases "Future of India's Semiconductor Industry" Roadmap (PIB, 2026) — chips as national-security/digital-sovereignty asset; USD 120–150 bn value chain and 10–13% global market by 2035; supply-chain resilience 3. Budget 2026-27 announces launch of India Semiconductor Mission (ISM) 2.0 (PIB) — ISM 2.0 launch, shift to ecosystem deepening 4. India Semiconductor Mission 2.0 (PIB) — full-stack IP, equipment/materials, 3nm/2nm nodes, ₹8,000 crore Modified Semicon Programme outlay