UPSC Prelims Practice Questions — Cabinet approves Semicon 2.0 - Government delivers on its commitment for a long-term policy support to Semiconductors in India

Q1. Semicon 2.0, approved by the Union Cabinet to provide sustained long-term support to the sector, carries the largest-ever policy outlay for Indian semiconductors. What is this total outlay?

  • A. Rs. 8,000 crore
  • B. Rs. 76,000 crore
  • C. Rs. 1,00,000 crore
  • D. Rs. 1,27,500 crore

Q2. The India Semiconductor Mission (ISM 1.0) / Semicon India Programme, the predecessor scheme on which Semicon 2.0 builds, was approved by the Union Cabinet in which year?

  • A. 2019
  • B. 2020
  • C. 2021
  • D. 2022

Q3. Which one of the following best describes the distinctive additional thrust of Semicon 2.0 / ISM 2.0 as compared with ISM 1.0?

  • A. Domestic production of semiconductor equipment and materials, and building full-stack Indian chip-design intellectual property
  • B. Providing only import-duty waivers on finished consumer electronics
  • C. Restricting support exclusively to display (LCD/OLED) manufacturing units
  • D. Offering electricity and water subsidies to existing fabs without any design component

Q4. As of December 2025, how many semiconductor projects had been approved under the Semicon India Programme (India Semiconductor Mission)?

  • A. 6
  • B. 10
  • C. 24
  • D. 12

Q5. Which one of the following was the first semiconductor packaging/ATMP unit to begin commercial production in India under the India Semiconductor Mission?

  • A. Micron (Sanand)
  • B. Kaynes Semicon
  • C. CG Semi (Sanand)
  • D. Tata Electronics (Jagiroad)

Q6. Units such as CG Semi and Kaynes Semicon are described as 'OSAT' facilities. In the semiconductor value chain, OSAT stands for:

  • A. Outsourced Semiconductor Assembly and Test
  • B. Onshore Semiconductor Advanced Technology
  • C. Optical Semiconductor Assembly and Testing
  • D. Original Semiconductor Application Testing

Q7. Which body functions as the nodal agency for appraisal and recommendation of semiconductor projects (such as the 10 approved across 6 states) under the Semicon India Programme?

  • A. India Semiconductor Mission (ISM)
  • B. Centre for Development of Advanced Computing (C-DAC)
  • C. NITI Aayog
  • D. Securities and Exchange Board of India (SEBI)

Q8. Under the Semicon India Programme, the Government's fiscal support for setting up silicon fabs, ATMP/OSAT units and chip-design projects is provided up to what share of the project cost?

  • A. Up to 25 per cent
  • B. Up to 40 per cent
  • C. Up to 50 per cent
  • D. Up to 75 per cent

Q9. Within India's Atmanirbhar Bharat-aligned semiconductor framework, the 'Design Linked Incentive (DLI) Scheme' primarily provides:

  • A. Financial incentives and EDA design-tool support to domestic companies designing semiconductor chips and SoCs
  • B. Capital subsidy exclusively for setting up silicon wafer-fabrication plants
  • C. Import-duty waivers for finished imported electronic goods
  • D. Electricity and water subsidies for OSAT assembly units