UPSC Prelims Practice Questions — Semicon 2.0 to deepen India’s semiconductor ecosystem with focus on design, equipment, fabs, advanced packaging, R&D and talent

Q1. Consider the following statements regarding Semicon 2.0 and the semiconductor programme that preceded it: 1. Semicon 2.0 has been approved by the Union Cabinet with a total budget outlay larger than that of the semiconductor and display manufacturing programme approved in 2021. 2. Semicon 2.0 adds a dedicated pillar for incentivising companies engaged in manufacturing and R&D of semiconductor machines and in manufacture of materials, chemicals and gases. 3. Fiscal support for chip design was introduced for the first time under Semicon 2.0, the preceding programme having been confined to fabrication and packaging units. Which of the statements given above is/are correct?

  1. Semicon 2.0 has been approved by the Union Cabinet with a total budget outlay larger than that of the semiconductor and display manufacturing programme approved in 2021.
  2. Semicon 2.0 adds a dedicated pillar for incentivising companies engaged in manufacturing and R&D of semiconductor machines and in manufacture of materials, chemicals and gases.
  3. Fiscal support for chip design was introduced for the first time under Semicon 2.0, the preceding programme having been confined to fabrication and packaging units.
  • A. 1 and 3 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. Consider the following statements about the pillars on which Semicon 2.0 is built: 1. Design — deepening the chip design ecosystem, building on start-ups that have already begun developing chips. 2. Advanced packaging — actively encouraging ATMP/OSAT units, with a focus on bringing some of the most advanced packaging technologies to India. 3. Research and Development — moving beyond the 28nm–110nm nodes with which India's fabrication journey began, towards more advanced nodes. 4. Talent development — establishing 315 new universities exclusively for chip design training under the mission. Which of the above is/are NOT correct?

  1. Design — deepening the chip design ecosystem, building on start-ups that have already begun developing chips.
  2. Advanced packaging — actively encouraging ATMP/OSAT units, with a focus on bringing some of the most advanced packaging technologies to India.
  3. Research and Development — moving beyond the 28nm–110nm nodes with which India's fabrication journey began, towards more advanced nodes.
  4. Talent development — establishing 315 new universities exclusively for chip design training under the mission.
  • A. 1 and 3
  • B. 2 only
  • C. 2 and 4
  • D. 4 only

Q3. Consider the following statements about the Semicon India Programme approved in 2021: 1. It was titled the 'Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India' and was approved by the Union Cabinet in December 2021. 2. Its scheme for setting up semiconductor fabs and display fabs extended fiscal support of up to 50% of project cost on a pari-passu basis to eligible applicants. 3. For compound semiconductors, silicon photonics, sensor fabs and ATMP/OSAT units, the original scheme offered 50% of capital expenditure, which was later brought down to 30% under the Modified Scheme. Which of the statements given above is/are correct?

  1. It was titled the 'Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India' and was approved by the Union Cabinet in December 2021.
  2. Its scheme for setting up semiconductor fabs and display fabs extended fiscal support of up to 50% of project cost on a pari-passu basis to eligible applicants.
  3. For compound semiconductors, silicon photonics, sensor fabs and ATMP/OSAT units, the original scheme offered 50% of capital expenditure, which was later brought down to 30% under the Modified Scheme.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. Under the Semicon India Programme, fiscal support to semiconductor and display fabs is extended 'on a pari-passu basis'. This expression means that:

  • A. The Union Government and the host State Government contribute the incentive amount in equal shares to the approved applicant
  • B. The incentive is released only after the unit attains its committed production capacity, thereafter in equal annual instalments
  • C. The Government's contribution is disbursed in step with, and in the same proportion as, the applicant's own committed project expenditure
  • D. The applicant is supported at the same rate as that offered to comparable fabrication units by other manufacturing nations

Q5. The Design Linked Incentive (DLI) Scheme, under which 23 chip-design projects have been sanctioned, draws its sanction from which one of the following?

  • A. The Production Linked Incentive Scheme for Large Scale Electronics Manufacturing, notified by MeitY in 2020
  • B. The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, notified by MeitY in 2020
  • C. The Electronics Components Manufacturing Scheme, approved by the Union Cabinet in 2025
  • D. The Programme for Development of Semiconductors and Display Manufacturing Ecosystem, approved by the Union Cabinet in 2021

Q6. Consider the following pairs of approved semiconductor units and their locations: 1. Micron Technology's assembly and test facility for DRAM and NAND products — Sanand, Gujarat 2. Tata Electronics' outsourced assembly and test facility — Morigaon, Assam 3. CG Power and Industrial Solutions' outsourced assembly and test facility — Mohali, Punjab 4. HCL–Foxconn joint venture unit for display driver chips — near Jewar, Uttar Pradesh Which of the above is/are correctly identified?

  1. Micron Technology's assembly and test facility for DRAM and NAND products — Sanand, Gujarat
  2. Tata Electronics' outsourced assembly and test facility — Morigaon, Assam
  3. CG Power and Industrial Solutions' outsourced assembly and test facility — Mohali, Punjab
  4. HCL–Foxconn joint venture unit for display driver chips — near Jewar, Uttar Pradesh
  • A. 1 and 3 only
  • B. 2 and 3 only
  • C. 1, 2 and 4
  • D. 1, 3 and 4

Q7. Consider the following, each described as an Independent Business Division of the Digital India Corporation: 1. IndiaAI 2. Bhashini 3. India Semiconductor Mission 4. Centre for Development of Advanced Computing Which of the above is/are NOT correctly described?

  1. IndiaAI
  2. Bhashini
  3. India Semiconductor Mission
  4. Centre for Development of Advanced Computing
  • A. 4 only
  • B. 1 and 4
  • C. 3 and 4
  • D. 2 only

Q8. The India Semiconductor Mission, which evaluates proposals and manages disbursal of fiscal incentives for chip projects, has been constituted as:

  • A. An attached office of the Ministry of Electronics and Information Technology headed by a Director General
  • B. An Independent Business Division within Digital India Corporation, enjoying administrative and financial autonomy
  • C. A statutory authority constituted under the Information Technology Act, 2000, reporting to MeitY
  • D. A not-for-profit company under Section 8 of the Companies Act, jointly promoted by MeitY and NITI Aayog

Q9. The outsourced semiconductor assembly and test facilities at Morigaon and at Sanand have been sanctioned under which one of the following instruments?

  • A. The Design Linked Incentive Scheme, which reimburses up to 50% of eligible expenditure incurred by the applicant
  • B. The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, giving 25% of capital expenditure
  • C. The Electronics Manufacturing Clusters 2.0 Scheme, which meets half the cost of common facilities at the cluster
  • D. The Modified Scheme for Semiconductor Assembly, Testing, Marking and Packaging, giving 50% of capital expenditure

Q10. The Union Budget 2026-27 placed semiconductors among the strategic and frontier sectors identified for scaling up manufacturing. Among the following semiconductor-sector initiatives, which one carries the largest financial outlay?

  • A. The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India
  • B. The Chips to Start-up Programme of the Ministry of Electronics and Information Technology
  • C. Semicon 2.0, approved by the Union Cabinet for the semiconductor design and manufacturing ecosystem
  • D. The Modified Programme for Semiconductor and Display Manufacturing Ecosystem for the year 2026-27