The Indian government has announced a $10 billion investment under the Semicon India Program, which aims to strengthen the country’s semiconductor and display manufacturing ecosystem. This approach is consistent with the Aatmanirbhar Bharat goal and would position India as a major player in the global semiconductor market, which is expected to reach $110 billion by 2030.
The initiative provides a 50% reduction in project costs for semiconductor and displays fabrication facilities, including compound semiconductor and Outsourced Semiconductor Assembly and Test (OSAT) facilities. These incentives are intended to attract large-scale investments and foster a sustainable environment for India’s semiconductor industry, while also encouraging self-reliance and technological leadership.
In addition to international investments, the initiative helps the domestic semiconductor ecosystem by providing up to 50% reimbursement on eligible expenses for design firms, startups, and MSMEs. A deployment-linked reward of 4% to 6% of net sales turnover over five years promotes more local innovation.
The effort also focuses on research, development, and workforce training. A specialised institution will be established to boost R&D and cultivate talent, while a comprehensive training program seeks to develop 85,000 semiconductor engineers, assuring a trained workforce to support the industry’s expansion.
