- PM Modi announces the next phase of the India Semiconductor Mission with new incentives to boost chip manufacturing and ecosystem development.
- Government approved 10 semiconductor plants including fabs and packaging/testing facilities, with a financial outlay of Rs 76,000 crore and additional $15 billion incentives planned.
- India aims to build a full-stack semiconductor ecosystem covering design, manufacturing, packaging, and intellectual property creation, attracting global investors and technology manufacturers.
The India Semiconductor Mission is entering an exciting new phase as Prime Minister Narendra Modi launched fresh incentives to speed up chip manufacturing and ecosystem growth. This mission, a key government scheme, aims to make India a global semiconductor hub by supporting manufacturing, design, and intellectual property development. With a focus on growing the semiconductor ecosystem, the mission matches India broader economic goals and technological independence.
The government is actively working on the next phase of the India Semiconductor Mission, which started in 2021 with a financial outlay of Rs 76,000 crore. This phase is important as it will further strengthen India
semiconductor ecosystem, making the country a strong player in the global chip manufacturing industry. The mission is not just about making chips but creating a complete ecosystem that includes design, packaging, testing, and intellectual property creation.
Key Announcements by PM Modi at SEMICON India 2025
At the opening of SEMICON India 2025, PM Modi shared several important updates. He announced new incentives to encourage chip design and intellectual property development within India. The Prime Minister said the world trusts India and is ready to work together in building the semiconductor future. He also pointed out that India is moving beyond backend manufacturing to become a full-stack semiconductor nation, able to lead global technological change.
Incentives and Financial Support for Semiconductor Manufacturing
In this phase, India has approved ten semiconductor plants, including two fabrication plants (fabs) and eight packaging and testing facilities. The government has set aside a big financial package, with the initial Rs 76,000 crore outlay and plans for an extra $15 billion in incentives. These incentives will also support capital goods and raw materials industries, which are key for semiconductor manufacturing.
Building a Full-Stack Semiconductor Ecosystem in India
India semiconductor mission is not just about chip manufacturing. The government is focused on building a full-stack ecosystem that includes chip design, manufacturing, packaging, testing, and intellectual property creation. This complete approach aims to make India globally competitive and independent in semiconductor technology. The first commercial made-in-India chip is expected soon, with Murugappa Group CG Semi leading the pilot production.
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Opportunities for Investors and Technology Manufacturers
India offers a strong opportunity for global investors and technology manufacturers looking to grow in the semiconductor sector. The government proactive incentives, combined with India growing economy and skilled workforce, make it an attractive place for semiconductor projects and partnerships.
Major Semiconductor Projects and Industry Collaborations
Several major projects are happening, including the Tata-PSMC fab, which is being built at an estimated cost of $11 billion. Other key players in India semiconductor ecosystem include US-based Micron Technology, Murugappa Group CG Power, Kaynes Semicon, and the HCL-Foxconn partnership. These partnerships show the growing confidence of global and domestic companies in India semiconductor potential.
India Economic Growth and Its Role in Semiconductor Development
India rising GDP and economic strength play a big role in supporting the semiconductor mission. PM Modi pointed out that even with global economic challenges, India is seeing strong growth across sectors like manufacturing and agriculture. This strong economic environment provides a solid base for the semiconductor industry to grow, helping India move closer to becoming the world
third-largest economy.
With these developments, the India Semiconductor Mission is set to change the country
technological landscape and create new chances for innovation and growth. If you are an investor, manufacturer, or technology enthusiast, now is a great time to see the possibilities within India
expanding semiconductor ecosystem. For more details visit the official Information and Broadcasting website