India readies $15-bn push in phase 2 of incentive policy for making semiconductors

India ramps up its semiconductor ambitions with a new $15-billion incentive plan, focusing on advanced chip fabrication and reducing subsidies for assembly plants to attract global tech investments.

India is set to bolster its semiconductor ambitions with a $15-billion incentive to emerge as a global chip hub, following in the footsteps of the US, Taiwan, and South Korea. According to The Indian Express, the government is preparing to raise its outlay after committing nearly the entire $10 billion allocated in the first phase of its semiconductor manufacturing incentive scheme.

Moneycontrol couldn't verify this report independently.

The revised blueprint, still under discussion, focuses on capital support for raw materials, gases, and chemicals essential for chip fabrication. However, the capex subsidy for assembly and testing plants, which had been raised to 50 percent to attract players like Micron Technology, may be scaled back to 30-40 percent under the new plan.

India's strategic push aligns with its approval of significant projects, such as the $11-billion chip fabrication plant by Tata Electronics in collaboration with Taiwan’s Powerchip. The government is now eyeing advanced fabrication technologies and micro-LED displays, signalling a shift towards more complex elements of the chip ecosystem.

As India competes with other nations for semiconductor investments, this $15-billion scheme is expected to further accelerate its journey toward becoming a key player in the global chip industry.