The government is working on the next phase of the India Semiconductor Mission, Prime Minister Narendra Modi announced Tuesday, in what could be the second comprehensive incentive package to drive the country’s aspirations in the chip space, which it sees as a major economic driver. He also said that as part of the next incentives for designing chips in the country, the government would stress on creating intellectual property that could be accrued to India.
Under the phase of the scheme, which was launched in 2021 with a financial outlay of Rs 76,000 crore, India has approved ten semiconductor plants, including two fabs and eight packaging and testing facilities. The Indian Express had earlier reported that the next phase could be worth $15 billion, and provide incentives to the capital goods and raw materials industry as well.
“The world trusts India, the world believes in India, and the world is ready to build the semiconductor future with India… We are focusing on next generation reforms, and are working on the next phase of the India Semiconductor Mission,” the PM said during his address at the inauguration of Semicon India 2025.
“Our semiconductor effort is not limited to chip manufacturing; we are building an ecosystem that will make India globally competitive and self reliant,” said PM Modi. “India is now moving beyond the backend to become a full-stack semiconductor nation. The day is not far when India’s smallest chip will drive the biggest change in the world. Our journey started late, but nothing can stop us now….” Modi added.
In a pitch to global investors, the PM cited India’s recent GDP numbers, saying that the country was on course to soon become the third largest economy in the world.
“A few days ago, the first quarter GDP numbers were released, and India’s growth was beyond everyone’s expectations. On one hand when economies are under stress due to challenges emanating from economic selfishness, India is moving ahead, registering growth across sectors like manufacturing and agriculture,” the PM said. “The pace with which India is growing, is giving the industry and its citizens a new energy. , new energy. With this direction of growth, India is guaranteed to soon become the world’s third largest economy.”
The PM said that as part of its chip push, the government was looking at developing the entire ecosystem. “Our success story in technology is not limited to one vertical, we are creating an entire ecosystem; be it design, manufacturing, packaging, and high-tech devices, everything is available here,” the PM said.
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The PM had earlier announced that the first commercial made in India chip will be available in the market, and Murugappa Group’s CG Semi is expected to make the first chip from its pilot line.
Earlier this month, the Union Cabinet cleared four new semiconductor assembly and testing plants under its India Semiconductor Mission, which have a total financial outlay of Rs 4,594 crore. With these, the government is now offering financial incentives for the construction of a total of 10 chip-related factories, ranging from a fabrication plant to assembly and testing operations.
This includes the Tata-PSMC fab, being built at a cost of roughly $11 billion, along with assembly and testing plants by US-based Micron Technology, the Tatas, Murugappa Group’s CG Power, Kaynes Semicon, and HCL–Foxconn.
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