India Plans $11 Billion Semiconductor Fund to Boost Local Chipmaking

India is preparing to launch a new semiconductor fund worth more than ₹1 trillion (about $11 billion) to accelerate domestic chip manufacturing and strengthen the country’s position in the global electronics supply chain. The initiative is expected to support chip design, manufacturing equipment, and supply chain development across the semiconductor ecosystem.

According to sources familiar with the discussions, the proposed fund could be announced within the next two to three months. The plan is currently under consultation and may be revised before the final rollout.

The initiative forms part of the broader technology strategy led by Prime Minister Narendra Modi to transform India into a major electronics and semiconductor manufacturing hub. Governments worldwide are increasing investments in chip production to secure supply chains and meet rising demand from industries such as artificial intelligence, smartphones, automobiles, and consumer electronics.

India’s effort follows similar global initiatives, including the CHIPS and Science Act introduced by the United States to expand domestic semiconductor manufacturing capacity.

The new fund will build on India’s earlier $10 billion semiconductor incentive program launched in 2021. That initiative helped attract global companies such as Micron Technology, which is setting up a semiconductor assembly facility in Gujarat.

Indian conglomerate Tata Group is also developing a semiconductor fabrication plant in Gujarat along with a chip packaging unit. Additional projects, including testing and assembly facilities by Foxconn, have also been announced under government-backed incentive programs.

While many of India’s initial projects focus on relatively mature semiconductor technologies, the government aims to gradually move toward more advanced chip manufacturing and establish a globally competitive semiconductor ecosystem by the early 2030s.

Source: The Economic Times