India is preparing to introduce a major funding initiative aimed at strengthening its semiconductor ecosystem. According to a report by a publication, the government is planning a new $11 billion fund to support chipmaking projects across the country.
The initiative is expected to be announced within the next 2 to 3 months. The fund will reportedly provide subsidies for semiconductor design projects, manufacturing equipment, and the development of supply chains related to chip production.
The move is part of a broader strategy led by Narendra Modi to position India as a global manufacturing hub. Although the country’s semiconductor industry is still at an early stage, the government hopes to replicate the success it achieved in electronics manufacturing. For example, Apple now assembles around 25% of its iPhone devices in India.
The report also noted that governments worldwide are investing heavily in semiconductor development. These investments aim to secure supply chains and meet growing demand from industries such as artificial intelligence, smartphones, automobiles, and consumer appliances.
India’s planned initiative is expected to mirror large international programs like the CHIPS and Science Act introduced in the United States, which allocated $52 billion for semiconductor development. China has also invested heavily through state-backed funding programs that support chipmakers across the industry.
The new funding program will build on India’s earlier $10 billion semiconductor incentive scheme launched in 2021. That program covered up to 50% of the cost required to set up semiconductor projects in the country.
Several major companies have already joined the initiative. Micron Technology is building an assembly facility in Gujarat, while Tata Group is developing a fabrication plant and a semiconductor packaging unit in the same state. In addition, Foxconn has announced plans for a test and assembly facility under the program.
Most of India’s early semiconductor projects focus on less complex chips. However, the government aims to move toward advanced semiconductor production in the coming years.
Technology Minister Ashwini Vaishnaw has set a goal for India to develop chipmaking capabilities comparable to leading semiconductor nations such as Taiwan, South Korea, and the United States by 2032.
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