New Delhi, India: India has taken a decisive step toward becoming a global semiconductor manufacturing hub as multiple chip fabrication projects receive government approval under the ambitious $10 billion production-linked incentive (PLI) scheme, positioning the country as a critical alternative in the global chip supply chain.
The approved projects span advanced node semiconductor fabrication, display manufacturing, and compound semiconductor segments. Leading technology conglomerates and international joint ventures are committing billions in investment to establish state-of-the-art fabrication facilities across Gujarat, Karnataka, and Tamil Nadu.
Under the Semiconductor Mission, India aims to reduce its dependence on chip imports and build a robust domestic ecosystem spanning design, fabrication, packaging, and testing. The initiative is expected to create over 100,000 direct and indirect jobs while attracting a complete supply chain of equipment makers, material suppliers, and engineering service providers.
Ashwini Vaishnaw, Union Minister for Electronics and Information Technology, stated: 'This is a transformative moment for Indian manufacturing. We are building not just fabs, but an entire semiconductor ecosystem that will power India's digital economy for decades to come.'
Industry analysts project that India's semiconductor market could grow to $100 billion by 2030, driven by domestic demand from mobile phones, electric vehicles, IoT devices, and defense applications. The initiative also aligns with global efforts to diversify chip manufacturing beyond East Asia.
The government has simultaneously launched a chip design-linked incentive program to nurture domestic semiconductor design capabilities, with over 100 startups and academic institutions already participating in early training and incubation programs.