India Lines Up $750 million Fresh Chip Incentives
New Delhi is putting more money behind its semiconductor bet, aiming to move from approvals and announcements to fabs, packaging plants and design capacity.
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India plans to disburse ₹7,100 crore (about $750 million) in semiconductor incentives in FY27, Mint reported, citing two unidentified government officials.
The funding is expected to draw about ₹15,000 crore (about $1.58 billion) in fresh investment and create around 4,700 jobs, according to the report.
Under the plan, the Department of Expenditure has tasked the Ministry of Electronics and Information Technology with supporting one semiconductor fabrication unit, nine manufacturing facilities and 30 design firms under the modified semiconductor and display manufacturing programme.
The fab unit is expected to receive ₹2,000 crore ($211 million) in support, attract ₹4,000 crore ($423 million) in investment and create 1,500 jobs.
Nine facilities covering compound semiconductors, silicon photonics, sensors, discrete fabs and ATMP or OSAT operations are expected to receive ₹5,000 crore. These projects are projected to bring in ₹11,000 crore in investment and create about 3,000 jobs.
The government also plans to support 30 semiconductor design companies with ₹100 crore under the Design Linked Incentive scheme. The support is expected to help develop 10 semiconductor IP cores and employ 200 design professionals.
India launched its ₹76,000 crore semiconductor programme in December 2021 to build domestic chip and display manufacturing capacity and reduce import dependence.
Approved projects under the program include Tata Electronics’ semiconductor fab in Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp., Micron’s ATMP facility in Sanand, Tata Electronics’ assembly and test unit in Assam, and CG Power’s chip facility in Gujarat with Renesas and Stars Microelectronics.
In May, the Union Cabinet approved two more semiconductor projects in Gujarat: Crystal Matrix’s integrated compound semiconductor fab and ATMP facility in Dholera, and Suchi Semicon’s OSAT facility in Surat.
