India is accelerating its semiconductor ambitions, aiming to secure 10% of global chip demand by 2030. Central to this strategy is the India Semiconductor Mission (ISM), launched in December 2022 with an allocation of ₹76,000 crore, designed to foster a sustainable semiconductor ecosystem and reduce reliance on imports.
In a significant development, Tata Electronics and Taiwan’s PSMC have announced a joint venture to establish India’s first 12-inch wafer fabrication facility in Dholera, Gujarat. With an investment of $11 billion, this project is expected to generate over 20,000 jobs and focus on manufacturing power management ICs, display driver ICs, microcontrollers, and high-performance computing logic components.
The 2025 budget reflects the government’s commitment, doubling the allocation for chip initiatives to ₹2,499.96 crore for FY26. This includes increased funding for compound semiconductors, sensors, and chip assembly/testing units, with a 56% rise to ₹3,900 crore, and nearly doubling the allocation for the design-linked incentive (DLI) to ₹200 crore.
Strategic partnerships with countries like Singapore, the US, Japan, and Taiwan are also being pursued to enhance technology transfer, skill development, and foreign direct investment. These efforts position India as a key player in the global semiconductor supply chain, aligning with the ‘China Plus One’ strategy amid evolving geopolitical dynamics.
