India Approves ₹1.28 Lakh Crore Chip Push
India’s Union Cabinet has approved ₹1.28 lakh crore in fresh funding to expand the country’s semiconductor programme. The investment will support chip manufacturing, domestic designs, intellectual property development and research as India seeks to strengthen its electronics supply chain.
India Expands Semiconductor Manufacturing Programme
The additional funding will be used to establish more semiconductor fabrication facilities and strengthen research and development across the chip ecosystem.
The programme will also support the creation of Indian intellectual property and encourage companies to develop semiconductor designs within the country. The expansion follows the government’s $10 billion incentive programme launched in 2021 to establish India as a global electronics manufacturing hub.
Under the existing initiative, India has approved 12 semiconductor manufacturing units and 24 chip-design projects.
Government Targets Domestic Chip Design
The expanded programme aims to reduce India’s dependence on imported semiconductors and develop domestic capabilities across chip design, fabrication, packaging and testing.
Semiconductors are essential components used in mobile phones, automobiles, telecommunications equipment, defence systems, consumer electronics and artificial intelligence infrastructure.
The government expects the new funding to attract additional private investment and strengthen cooperation between manufacturers, research institutions and semiconductor design companies.
Mobile Manufacturing Gets ₹62,500 Crore
The Cabinet also approved ₹62,500 crore for a five-year programme aimed at expanding mobile phone manufacturing in India.
The scheme will offer incentives ranging from 2.25% to 5% on eligible mobile phone sales. Manufacturers may receive an additional incentive of up to 1.5% for sourcing key components domestically.
The government expects the mobile manufacturing programme to generate approximately 60,000 direct jobs. Both initiatives form part of India’s broader strategy to increase electronics exports, build local supply chains and position the country as a major global manufacturing centre.
