UPSC Prelims Practice Questions — Govt. notifies ₹1.3 lakh-crore semicon scheme’s phase two

Q1. Under Semicon 2.0, the pillar titled 'Machines and Materials' is meant to incentivise which one of the following categories of firms?

  • A. Firms importing capital equipment and specialty chemicals for fabs and re-exporting finished wafers under a duty-drawback arrangement
  • B. Firms supplying construction machinery, cranes and industrial gases for building fab campuses and their utility infrastructure
  • C. Firms engaged in the manufacture and R&D of semiconductor equipment and in producing the materials, chemicals and gases essential to chip manufacturing
  • D. Firms manufacturing electronic components and printed circuit boards that use domestically fabricated chips as inputs

Q2. Consider the following statements comparing Semicon 2.0 with the semiconductor programme it succeeds: 1. Semicon 2.0 has been approved with a total budget outlay of ₹1,27,500 crore, which exceeds the ₹76,000 crore outlay of the programme approved by the Union Cabinet in December 2021. 2. Unlike the earlier programme, Semicon 2.0 is organised around six pillars, one of which is devoted specifically to the machines, materials, chemicals and gases required for semiconductor manufacturing. 3. Semicon 2.0 raises the fiscal support available for setting up silicon semiconductor fabs from 50 per cent to 75 per cent of project cost. Which of the statements given above is/are correct?

  1. Semicon 2.0 has been approved with a total budget outlay of ₹1,27,500 crore, which exceeds the ₹76,000 crore outlay of the programme approved by the Union Cabinet in December 2021.
  2. Unlike the earlier programme, Semicon 2.0 is organised around six pillars, one of which is devoted specifically to the machines, materials, chemicals and gases required for semiconductor manufacturing.
  3. Semicon 2.0 raises the fiscal support available for setting up silicon semiconductor fabs from 50 per cent to 75 per cent of project cost.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. As of June 2026, projects cumulatively worth about ₹1.64 lakh crore had been approved under the India Semiconductor Mission. How many projects did this comprise?

  • A. 8
  • B. 10
  • C. 12
  • D. 15

Q4. The India Semiconductor Mission, which administers the Semicon India programme, has been constituted as which one of the following?

  • A. An attached office of the Ministry of Electronics and Information Technology headed by an Additional Secretary to the Government of India
  • B. A statutory body constituted under the Information Technology Act, 2000, laying its annual report before Parliament
  • C. A Section 8 company jointly promoted by the Ministry of Electronics and Information Technology and the Department of Science and Technology
  • D. An independent business division within the Digital India Corporation, having administrative and financial autonomy

Q5. With reference to the units approved under the India Semiconductor Mission, which one of the following statements about an ATMP/OSAT unit is correct?

  • A. It performs the entire chip-making process from wafer growth to final electrical test, and therefore never depends on any external supplier of wafers
  • B. It carries out back-end operations on wafers or dies — die attach, wire bonding, encapsulation and final electrical test — which may be sourced from fabrication plants elsewhere
  • C. It is devoted exclusively to the design and verification of integrated circuits, and undertakes no physical processing of silicon whatsoever
  • D. It fabricates only compound semiconductor wafers, and all such units in India are permanently barred from handling silicon-based devices

Q6. Consider the following statements regarding projects approved under the India Semiconductor Mission: 1. Among the projects approved as of June 2026, packaging units outnumber fabrication units. 2. Every project approved so far is a silicon-based fabrication plant; no compound semiconductor fabrication project has been approved. 3. The Modified Scheme covering compound semiconductors, silicon photonics, sensors and discrete fabs as well as ATMP/OSAT facilities extends fiscal support of 50 per cent of capital expenditure on a pari-passu basis. Which of the statements given above is/are correct?

  1. Among the projects approved as of June 2026, packaging units outnumber fabrication units.
  2. Every project approved so far is a silicon-based fabrication plant; no compound semiconductor fabrication project has been approved.
  3. The Modified Scheme covering compound semiconductors, silicon photonics, sensors and discrete fabs as well as ATMP/OSAT facilities extends fiscal support of 50 per cent of capital expenditure on a pari-passu basis.
  • A. 1 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q7. The provision of ₹1,000 crore made for the India Semiconductor Mission 2.0 in the Union Budget 2026-27 falls under the demand for grants of which one of the following?

  • A. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • B. Department of Science and Technology, Ministry of Science and Technology
  • C. Ministry of Electronics and Information Technology
  • D. Department of Heavy Industry, Ministry of Heavy Industries

Q8. Consider the following statements regarding the Union Budget 2026-27 and India's semiconductor programmes: 1. A provision of ₹1,000 crore was made for the India Semiconductor Mission 2.0 for the financial year 2026-27. 2. For 2026-27 the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India carries a total financial outlay of ₹8,000 crore, larger than the first-year provision for ISM 2.0. 3. ISM 2.0 is intended to focus, among other things, on producing semiconductor equipment and materials within India and on designing full-stack Indian semiconductor intellectual property. Which of the statements given above is/are correct?

  1. A provision of ₹1,000 crore was made for the India Semiconductor Mission 2.0 for the financial year 2026-27.
  2. For 2026-27 the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India carries a total financial outlay of ₹8,000 crore, larger than the first-year provision for ISM 2.0.
  3. ISM 2.0 is intended to focus, among other things, on producing semiconductor equipment and materials within India and on designing full-stack Indian semiconductor intellectual property.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q9. Which of the following facilities are covered by the Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fabs and Semiconductor ATMP/OSAT facilities in India? 1. Silicon photonics fabs 2. Sensor fabs, including those making Micro-Electro-Mechanical Systems (MEMS) 3. Display fabrication units producing AMOLED panels 4. Discrete semiconductor fabs Which of the above is/are correctly identified?

  1. Silicon photonics fabs
  2. Sensor fabs, including those making Micro-Electro-Mechanical Systems (MEMS)
  3. Display fabrication units producing AMOLED panels
  4. Discrete semiconductor fabs
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 3 only

Q10. Under the Product Design Linked Incentive component of the Design Linked Incentive Scheme, reimbursement of up to 50 per cent of eligible expenditure is subject to a ceiling of how much per application?

  • A. ₹10 crore
  • B. ₹15 crore
  • C. ₹30 crore
  • D. ₹50 crore

Q11. The first set of Made-in-India chips presented to the Prime Minister was rolled out from a pilot line at a facility located at which one of the following places?

  • A. Dholera, Gujarat
  • B. Sanand, Gujarat
  • C. Jagiroad, Assam
  • D. Mohali, Punjab

Q12. Under the talent-development thrust of India's semiconductor programme, approximately how many students have been trained on complex chip design using the latest EDA tools?

  • A. 18,000
  • B. 38,000
  • C. 68,000
  • D. 1,08,000