India’s Semiconductor Revolution: Over ₹2859 Crore Invested in R&D, ₹298 Crore in Skill Development
The Indian government has significantly boosted its semiconductor ecosystem, with over ₹2859 crore allocated to Research and Development (R&D) and ₹298 crore for skill development over the past decade. This strategic investment positions India as a global semiconductor design powerhouse, home to 19% of the world’s chip design engineers and 7% of global chip design facilities, according to the Semiconductor Industry Association (SIA) and BCG reports.
Under MeitY’s dedicated R&D Scheme, the government supports innovative projects in nanotechnology, semiconductor materials, processes, chip design, and IP core development. Annual spending on semiconductor R&D has steadily grown, peaking at ₹502 crore in 2021-22.
The government’s ₹76,000 crore “Modified Programme for Semiconductors and Display Fab Ecosystem” earmarks 2.5% of funds for R&D and skill development. Additionally, ₹1,000 crore is dedicated to the Design Linked Incentive (DLI) Scheme to empower the fabless chip design industry.
Skill development programs like SMDP-C2SD, INUP, and Chips to Start-up (C2S) are nurturing future talent. In 2024-25 alone, ₹69.84 crore has been spent on capacity building.
This unwavering focus on innovation and workforce development is propelling India towards self-reliance in semiconductors, strengthening its global leadership in the tech-driven era.
Source: PIB
