Government of India (GoI) plans ₹1 lakh crore fund for domestic semiconductor manufacturing

Key facts

• The Government of India (GoI) plans to unveil a fund exceeding ₹1 lakh crore ($10.8 billion) to bolster domestic chipmaking and advance its manufacturing hub ambitions.
• The proposed fund will provide subsidies for semiconductor chip design projects, manufacturing equipment, and supply chain development.
• The initiative is expected to be launched within two to three months and builds upon the $10 billion incentive programme introduced in 2021.
• Under the 2021 programme, the GoI offered to bear 50% of the cost for setting up semiconductor projects in the country.
• Micron Technology Inc. is currently establishing an assembly facility in Gujarat, while Tata Group is constructing a semiconductor fabrication plant and a separate packaging unit in the same state.
• Foxconn Technology Group has announced a test and assembly facility as part of the existing government incentive programme.
• The GoI aims to develop chipmaking capabilities comparable to global leaders such as Taiwan, South Korea, and the United States (US) by 2032.