India is preparing a major leap in semiconductor manufacturing, with the government planning to nearly double financial support for the sector to around $20 billion under the revamped India Semiconductor Mission.
The proposed expansion could place India among the world’s most aggressive semiconductor investment destinations, potentially rivaling countries like South Korea, Japan, and Singapore in chip manufacturing incentives.
The government has already deployed most of the original $10 billion allocation under the first phase of the semiconductor mission, which covers up to 50% of plant setup costs. The scheme has backed 14 projects, including semiconductor fabs, OSAT and ATMP facilities, and advanced display manufacturing plants.
Among the biggest beneficiaries is Tata Electronics, which is building a semiconductor fabrication facility as India accelerates efforts to reduce import dependence and strengthen domestic electronics production.
The semiconductor push comes at a critical time as global companies diversify supply chains beyond China and demand for chips surges across AI, electric vehicles, telecom, and consumer electronics.
In the latest Union Budget, the government announced ISM 2.0 and allocated an initial ₹1,000 crore while the larger framework is being finalized. The next phase is expected to focus on attracting global chipmakers, expanding advanced packaging capabilities, and strengthening India’s long-term position in the global semiconductor ecosystem.
If executed successfully, the initiative could transform India from a major electronics consumer into a strategic global semiconductor manufacturing hub.