India is intensifying its efforts in the semiconductor sector by planning a new $11 billion fund to support growth in chip manufacturing, technology development, and the local supply chain, according to a Bloomberg report. Semiconductors are critical for powering devices like smartphones, laptops, cars, defence systems, and AI servers. While the plans are still under discussion, the government aims to position India as a major player in the global chip industry.
This initiative aligns with Prime Minister Narendra Modi’s vision to accelerate India’s chip-making capabilities and is supported by Union Minister for Electronics and IT, Ashwini Vaishnaw, who aims to make India a global semiconductor hub by 2030. India hopes to leverage its engineering talent, design expertise, and government incentives to attract chipmakers. For example, Apple now assembles about 25% of its iPhones in India, highlighting the country’s potential as a manufacturing hub.
The government plans to expand its existing $10 billion chip incentive program, launched in 2021, which offered to cover up to 50% of the costs for semiconductor manufacturing facilities. This program has already attracted major companies like Micron Technology and Foxconn Technology Group, and encouraged the Tata Group to build a semiconductor factory in Gujarat. The new fund is expected to further boost domestic manufacturing, increase exports, and build a robust industrial ecosystem in India.
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