UPSC Prelims Practice Questions — India Semiconductor Mission 2.0
Q1. India Semiconductor Mission 2.0, announced in the Union Budget 2026–27, identifies which one of the following as its principal cross-cutting thrust for building a future-ready skilled workforce?
- A. Industry-led research and training centres
- B. A fresh capital subsidy for setting up display fabs
- C. An enhanced ceiling for the Design Linked Incentive Scheme
- D. Import substitution of DRAM and NAND memory chips
Q2. What is the budgetary provision made exclusively for the India Semiconductor Mission (ISM) 2.0 for FY 2026–27?
- A. ₹1,000 crore
- B. ₹8,000 crore
- C. ₹76,000 crore
- D. ₹1,27,500 crore
Q3. With reference to how India Semiconductor Mission (ISM) 2.0 differs from ISM 1.0, consider the following statements:
1. Whereas ISM 1.0 primarily subsidised chip fabrication and ATMP/OSAT units, ISM 2.0 shifts emphasis to manufacturing semiconductor equipment and materials within India.
2. ISM 2.0 seeks to develop full-stack Indian semiconductor intellectual property, a layer not directly targeted by ISM 1.0's fabrication incentives.
3. ISM 2.0 abolishes the earlier programme and replaces it with a single enlarged capital subsidy for display fabs.
Which of the statements given above is/are correct?
- Whereas ISM 1.0 primarily subsidised chip fabrication and ATMP/OSAT units, ISM 2.0 shifts emphasis to manufacturing semiconductor equipment and materials within India.
- ISM 2.0 seeks to develop full-stack Indian semiconductor intellectual property, a layer not directly targeted by ISM 1.0's fabrication incentives.
- ISM 2.0 abolishes the earlier programme and replaces it with a single enlarged capital subsidy for display fabs.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q4. The focus of India Semiconductor Mission 2.0 is organised around how many core pillars, namely semiconductor equipment & materials, full-stack Indian semiconductor IP, and supply-chain fortification?
- A. Two
- B. Three
- C. Four
- D. Five
Q5. The India Semiconductor Mission (ISM), which operationalises the Semicon India Programme approved in 2021, has been established as an Independent Business Division within which one of the following organisations?
- A. Digital India Corporation
- B. Centre for Development of Advanced Computing (C-DAC)
- C. Software Technology Parks of India (STPI)
- D. Semi-Conductor Laboratory (SCL), Mohali
Q6. Under the Semicon India Programme (2021), fiscal support of up to 50% of project cost is extended to approved applicants 'on a pari-passu basis'. In this context, the phrase 'pari-passu' means that the government support is disbursed:
- A. In equal step and proportion, in tandem with the applicant's own expenditure on the project
- B. Only after the unit achieves full-scale commercial production
- C. As a single upfront grant released before construction begins
- D. As a concessional loan repayable over the project's lifetime
Q7. Which one of the following is the only scheme of the India Semiconductor Mission that is aimed exclusively at the front-end chip design stage of the value chain, rather than at fabrication or packaging?
- A. Design Linked Incentive (DLI) Scheme
- B. Scheme for setting up of Semiconductor Fabs in India
- C. Scheme for setting up of Display Fabs in India
- D. Scheme for Compound Semiconductors/Silicon Photonics/Sensors Fab and ATMP/OSAT facilities
Q8. As of December 2025, the 10 semiconductor projects entailing about ₹1.60 lakh crore of investment across 6 states under the Semicon India Programme were sanctioned by which one of the following authorities?
- A. The Union Cabinet
- B. NITI Aayog's Governing Council
- C. The Reserve Bank of India
- D. The Telecom Regulatory Authority of India
Q9. With reference to the commencement of commercial semiconductor production under the India Semiconductor Mission, consider the following statements:
1. The first set of Made-in-India chips from a pilot line was presented to the Prime Minister by the Union Minister for Electronics & Information Technology.
2. Commercial production has commenced at the Micron facility located at Sanand, Gujarat.
3. Commercial production has commenced at the Kaynes Semicon plant located at Sanand, Gujarat.
4. Both the Micron and Kaynes commercial-production facilities are located in Assam.
Which of the statements given above is/are NOT correct?
- The first set of Made-in-India chips from a pilot line was presented to the Prime Minister by the Union Minister for Electronics & Information Technology.
- Commercial production has commenced at the Micron facility located at Sanand, Gujarat.
- Commercial production has commenced at the Kaynes Semicon plant located at Sanand, Gujarat.
- Both the Micron and Kaynes commercial-production facilities are located in Assam.
- A. 1 and 2
- B. 4 only
- C. 3 and 4
- D. 2 and 4
Q10. In the institutional architecture of India's semiconductor programme, the 'India Semiconductor Mission (ISM)' is best described as:
- A. An Independent Business Division within Digital India Corporation that acts as the nodal agency implementing the semiconductor and display schemes
- B. A public-sector chip fabrication unit at Mohali operated directly by MeitY
- C. A statutory regulator governing the electronics and semiconductor sector
- D. An inter-ministerial council chaired by the Prime Minister to clear fab investments
Q11. The India Semiconductor Mission and its 2.0 phase are officially framed as advancing which one of the following overarching national strategies for technological self-reliance?
- A. Atmanirbhar Bharat
- B. Digital India
- C. Startup India
- D. Skill India