The Indian government has received several proposals aimed at expanding the nation’s semiconductor manufacturing capabilities.
In a recent parliamentary session, it was disclosed that four proposals have been submitted for the establishment of semiconductor fabrication plants, in addition to 13 proposals for setting up chip assembly units.
Total ₹6,903 crore has been allotted for the semiconductor mission in the interim budget. Major portion of this allocation, ₹4,203 crore, is dedicated to incentives for assembly, test, and packaging (ATMP) facilities, potentially benefiting significant projects like Micron’s setup in Gujarat, the proposed Foxconn and HCL joint venture, and initiatives by the Tata Group.
This development is part of the broader Semicon India programme, which has been allocated a budget of Rs 76,000 crore to foster the growth of a semiconductor and display manufacturing ecosystem within India.
The initiative underscores the government’s commitment to nurturing the semiconductor sector, providing substantial financial incentives to attract investments in semiconductor fabrication, display manufacturing, and related design infrastructures.
This move complements the establishment of a Rs 22,516 crore chip assembly plant by the US-based memory chip manufacturer Micron, highlighting the growing interest in India as a potential hub for semiconductor manufacturing. This strategic push is expected to bolster India’s position in the global semiconductor industry and enhance its technological sovereignty.