Gotrade News - India plans to launch a fund exceeding ₹1 trillion to support domestic chip manufacturing. This marks a significant step in India's efforts to become a competitive global manufacturing hub.
Key Takeaways:
- India prepares subsidies for chip design projects and supply chain development.
- This initiative builds upon a $10 billion incentive program started in 2021.
- India aims to boost production capacity to rival global leaders by 2032.
The new program includes subsidies for chip design projects and manufacturing equipment development. This move is expected to attract major chip manufacturers to the world's most populous nation.
With increasing demand for chips from AI, smartphones, and automotive sectors, governments worldwide are ramping up support for the chip industry. India draws inspiration from the U.S. and China, each designing major legislations and funds to bolster local production.
Prime Minister Narendra Modi seeks to accelerate India's chip campaign. Currently, only a few major projects are underway. However, India plans to expand capacity by attracting foreign investment through these incentives.
India offers strong design and engineering talent, as evidenced by Apple Inc.'s expansion, now assembling 25% of iPhones in the country. India hopes for similar moves in the chip sector.
This initiative continues the $10 billion incentive program from 2021, which covers half the cost for setting up chip projects. It has attracted companies like Micron Technology Inc. and Tata Group to Gujarat.
While India currently focuses on less advanced chips, its ambition is to climb up the value chain. India's target is to match the chip-making capabilities of global leaders like Taiwan and South Korea by 2032.
Reference:
- Bloomberg, India Plans New $11 Billion Fund to Support Local Chipmaking. Accessed on March 12, 2026
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