NEW DELHI, July 15 — India approved a new semiconductor programme on Wednesday, offering more than US$13 billion (RM54.94 billion) in financial assistance to accelerate local chip production as it seeks to become a global electronics powerhouse.
India’s Union Cabinet approved the “Semicon 2.0” initiative, expanding on a drive launched five years ago to reduce reliance on imports and attract investment in one of the world’s most strategically important industries.
The move comes as countries race to secure semiconductor supply chains following pandemic-era disruptions and growing geopolitical tensions that exposed vulnerabilities in global chip production.
The programme will focus on strengthening the local semiconductor ecosystem, encouraging domestic production of key materials and attracting global manufacturers to establish fabrication plants in India.
The plan recognised the need for “sustained and long-term support” for the industry and aimed to place India “on the semiconductor map of the world”, the cabinet said in a statement, without providing more details on how the money will be used.
An earlier semiconductor incentive scheme, “Semicon 1.0”, unveiled in 2021, offered support covering up to half the cost of setting up chip projects.
The incentives helped launch 12 manufacturing projects across fabrication, packaging and related segments, with at least three already entering commercial production.
Among them is a semiconductor assembly and test facility established by US memory giant Micron Technology.
India’s chip market has grown from about US$38 billion (RM160.75 billion) in 2023 to an estimated US$45 billion–US$50 billion (RM190.03 billion–RM211.14 billion) in 2024–25.
The government is targeting a market size of US$100 billion–US$110 billion (RM422.28 billion–RM464.51 billion) by 2030. — AFP
Date: 15 July, 2026 8:00 pm
Source: Malay Mail
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