New Delhi: India is preparing to launch a semiconductor support fund exceeding Rs 1 trillion (about $10.8 billion) as part of its efforts to strengthen the domestic chip industry and position the country as a global manufacturing hub for advanced electronics.
According to reports, the proposed fund could be introduced within the next two to three months.
The scheme is expected to provide financial assistance for semiconductor design initiatives, procurement of manufacturing equipment and development of supply chains across the chip ecosystem.
However, the proposal is still under review and may change into a formal announcement.
The move aligns with the government’s broader strategy under Prime Minister Narendra Modi to establish a domestic semiconductor manufacturing base.
India’s chip ecosystem is still at an early stage, with only a handful of major projects currently in development.
Globally, governments are increasing investments to secure semiconductor supply chains as demand rises across sectors such as artificial intelligence, smartphones, automobiles and consumer electronics.
India’s plan follows similar initiatives abroad, including the $52 billion CHIPS and Science Act in the United States, while China has also launched large state-backed funds to support its chip industry.
India aims to attract global semiconductor companies by leveraging its strong engineering and chip design talent alongside production-linked incentives.
This strategy has already supported the growth of electronics manufacturing in the country, with about 25 per cent of Apple iPhones now assembled in India.
The proposed fund will build on the $10 billion semiconductor incentive programme announced in 2021, which covered up to 50 per cent of capital expenditure for chip projects.
Early initiatives include a semiconductor assembly and testing facility by Micron Technology in Gujarat, while the Tata Group is developing both a fabrication plant and a chip packaging unit in the state.
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