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Current Affairs and GK · 6 questions · about 1 min to read

India Semiconductor Mission

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The passage

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India launched the India Semiconductor Mission (ISM) in December 2021 as part of a broader effort to develop a domestic semiconductor manufacturing ecosystem. The government announced an incentive package of Rs. 76,000 crore to attract investment in semiconductor fabrication plants (fabs), display fabs, and semiconductor packaging. In June 2023, Micron Technology — an American semiconductor company — announced an investment of up to USD 825 million to establish an assembly, testing, marking, and packaging (ATMP) facility in Sanand, Gujarat, with the government providing incentives under the India Semiconductor Mission. This was the first major commitment from a global chipmaker to set up operations in India.

The semiconductor sector is considered strategically critical because chips are essential components in virtually all modern electronic devices — smartphones, automobiles, defence equipment, medical devices, and industrial machinery. The COVID-19 pandemic exposed global supply chain vulnerabilities when a global chip shortage caused disruptions across industries. Countries including the United States, the European Union, Japan, and South Korea have implemented their own chip subsidy programmes, creating a global race for semiconductor manufacturing capacity.

  1. Q1. India’s India Semiconductor Mission was launched in:

    1. January 2020
    2. December 2021
    3. June 2023
    4. March 2024
    Show answer

    Answer: B. December 2021

    The passage states: 'India launched the India Semiconductor Mission (ISM) in December 2021.'

  2. Q2. The government’s incentive package announced under the semiconductor mission was:

    1. Rs. 50,000 crore
    2. Rs. 76,000 crore
    3. Rs. 1,00,000 crore
    4. USD 825 million
    Show answer

    Answer: B. Rs. 76,000 crore

    The passage states: 'The government announced an incentive package of Rs. 76,000 crore to attract investment in semiconductor fabrication plants, display fabs, and semiconductor packaging.'

  3. Q3. Micron Technology’s facility in Sanand, Gujarat is classified as an ATMP facility. ATMP stands for:

    1. Assembly, Testing, Marking, and Packaging
    2. Advanced Technology Manufacturing Plant
    3. Automated Transistor and Microchip Processing
    4. Application Testing and Market Preparation
    Show answer

    Answer: A. Assembly, Testing, Marking, and Packaging

    The passage expands the acronym: 'assembly, testing, marking, and packaging (ATMP) facility.'

  4. Q4. The COVID-19 pandemic is mentioned in the passage because:

    1. The pandemic increased demand for semiconductors in medical devices
    2. The resulting global chip shortage exposed supply chain vulnerabilities and underscored why semiconductor manufacturing capacity matters strategically
    3. The pandemic caused Micron Technology to delay its India investment
    4. Chip shortages during the pandemic were caused by India’s lack of domestic manufacturing
    Show answer

    Answer: B. The resulting global chip shortage exposed supply chain vulnerabilities and underscored why semiconductor manufacturing capacity matters strategically

    The passage states: 'The COVID-19 pandemic exposed global supply chain vulnerabilities when a global chip shortage caused disruptions across industries.'

  5. Q5. The US legislation that funded domestic semiconductor manufacturing in the United States, passed in 2022, is commonly known as:

    1. The Infrastructure Investment and Jobs Act
    2. The CHIPS and Science Act
    3. The National Security and Technology Act
    4. The American Semiconductor Sovereignty Act
    Show answer

    Answer: B. The CHIPS and Science Act

    The CHIPS and Science Act (Creating Helpful Incentives to Produce Semiconductors) was signed into law by President Biden in August 2022, providing USD 52 billion for domestic semiconductor manufacturing. Background GK.

  6. Q6. Semiconductors are described in the passage as ‘strategically critical’ because:

    1. They are the most expensive component in most electronic devices
    2. They are essential in virtually all modern electronic devices across defence, automotive, medical, and consumer sectors
    3. They can only be manufactured in facilities that require rare earth minerals controlled by a small number of countries
    4. The intellectual property for semiconductor design is concentrated in a few companies that can restrict access
    Show answer

    Answer: B. They are essential in virtually all modern electronic devices across defence, automotive, medical, and consumer sectors

    The passage states: 'chips are essential components in virtually all modern electronic devices — smartphones, automobiles, defence equipment, medical devices, and industrial machinery.'

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