India is increasing its efforts to grow its semiconductor industry by planning a new multi-billion-dollar fund. Semiconductors are important parts used in many electronic devices such as smartphones, laptops, cars, defence equipment, and AI servers.

According to a Bloomberg report, the Indian government is planning to create a large $11 billion fund. This money will help companies build chip factories, develop semiconductor technology, and strengthen the country’s chip supply chain through subsidies and financial support. However, the plan is still being discussed and has not been finalized yet.

India is also joining the global race to meet the growing demand for chips used in AI systems, smartphones, cars, and consumer electronics. Many countries are already investing heavily in semiconductor production to reduce their dependence on imports, while India is now increasing its efforts in this sector.

This plan also supports Prime Minister Narendra Modi’s goal of boosting semiconductor manufacturing in India. Union Minister for Electronics and IT Ashwini Vaishnaw has also said that India aims to become a major global semiconductor hub by 2030.

India’s strategy to attract chipmakers focuses on its strong engineering talent, chip design expertise, and government incentives. Because of these incentives, Apple now assembles around 25% of its iPhones in India.

The government now wants to apply a similar approach to semiconductor manufacturing. The goal is to increase exports, strengthen domestic production, and build a strong industrial ecosystem.

The new plan is expected to expand India’s $10 billion semiconductor incentive program launched in 2021. Under that program, the government offered to cover up to 50% of the cost of building chip manufacturing facilities.

This initiative has already attracted companies like Micron Technology and Foxconn Technology Group. It has also encouraged Tata Group to build a semiconductor factory in Gujarat.

- LE News Desk