India’s Semiconductor Policy, Fab Projects and Electronics Manufacturing Schemes

India has launched structural policy frameworks to position itself as a global hub for electronics manufacturing, semiconductor design, and display fabrication. These initiatives aim to reduce import dependency and secure supply chain resilience for critical technologies.

Core Pillars of India Semiconductor Mission

The national semiconductor strategy relies on multi-layered financial incentives and institutional mechanisms administered through specialized bodies.

• The India Semiconductor Mission functions as the nodal agency for formulating and driving long-term strategies for developing a sustainable semiconductor and display ecosystem.
• The framework extends fiscal support of up to fifty percent of project capital expenditure on a pari-passu basis for setting up silicon complementary metal-oxide-semiconductor fabrication units.
• Specialized incentive tiers target compound semiconductors, silicon photonics, sensors, discrete semiconductor fabs, and packaging units.
• The strategy encompasses talent development through specialized curricula across academic institutions and supports domestic research and development.

Key Schemes and Financial Support Structures

Various targeted subsidy mechanisms drive investments across different segments of the electronics value chain.

Manufacturing Projects and Ecosystem Progress

The implementation phase has witnessed large-scale capital commitments and ground-level execution across multiple states.

• Major fabrication and assembly plants have been established in states such as Gujarat, Odisha, Uttar Pradesh, and Rajasthan.
• Public-private partnerships and joint ventures between domestic industrial conglomerates and international technology firms facilitate advanced node manufacturing.
• The Design Linked Incentive program promotes fabless design startups by offering financial support and deployment-linked incentives based on net sales turnover.
• Ancillary schemes target electronic components, sub-assemblies, and specialized chemicals to foster a domestic supply chain for raw materials.

Fact-File on India’s Semiconductor Policies

• The flagship national program was initially introduced with a financial outlay of ₹76,000 crore.
• The Design Linked Incentive program provides product design support capped at ₹15 crore per application along with deployment incentives.
• The Semiconductor Laboratory located in Mohali serves as a foundational research and fabrication facility for domestic prototype testing.
• The Chips to Start up initiative provides academic institutions and startups with access to electronic design automation tools.
• The primary objective of the policy framework is to achieve technological sovereignty and reduce reliance on overseas semiconductor imports.