Poised to boost self-reliance, the Centre is pushing India’s semiconductor mission with enhanced focus on design and fabrication.
India’s ambition to become a semiconductor powerhouse could get a massive push, with the Centre considering a $20 billion package to expand the India Semiconductor Mission. The Ministry of Electronics and IT (Meity) has sent a proposal to the finance ministry, seeking approval to double the existing incentives under ISM. A final clearance from the Union Cabinet is likely by December.
According to officials, Meity is preparing an economic projection document to show the performance and returns of ISM’s first phase and benchmark it against similar global schemes, including those in the US, EU, and East Asia. While countries like the US have rolled out subsidies worth $52 billion under the Chips Act and the EU has mobilised over €43 billion, India aims to build a full-stack semiconductor ecosystem through manufacturing, design, and packaging.
So far, the government has cleared projects worth billions under ISM, including Tata Electronics-PSMC, Micron, TSAT, CG Power-Renesas, and HCL-Foxconn. The first fabs are expected to come online around 2025. The second phase is likely to introduce stronger incentives for design-linked schemes to aid domestic players, alongside a stable policy environment to attract global investors.
Industry experts note that while India’s progress has been encouraging, chipmaking remains capital-intensive and highly competitive. Global players from China, Japan, and South Korea are also investing billions through direct funding, tax breaks, and grants to secure their positions in the semiconductor supply chain.
