The Government of India has recently announced a significant allocation of USD 10 billion for the Semicon India Program to boost the semiconductor and display manufacturing industry. This initiative is part of the country’s larger vision of Aatmanirbhar Bharat (Self-Reliant India) and enhancing resilience in global supply chains.
According to Invest India, the national investment promotion and facilitation agency of India, this move aims to support the semiconductor market, projected to reach USD 110 billion by 2030, and the display market expected to hit USD 15 billion by 2025. The growth in these sectors is being driven by the increasing adoption of technologies like 5G, AI, IoT, and electric vehicles.
The Semicon India Program offers incentives for semiconductor and display fabrication facilities to attract investments and promote self-reliance in advanced semiconductor technologies. Investors in compound semiconductor and OSAT facilities will receive support on capital expenditures.
Additionally, the scheme includes provisions to nurture domestic semiconductor design companies, startups, and MSMEs by offering reimbursements on eligible expenditures and deployment-linked incentives. A specialized institution will be established to drive the Semicon India Programme, focusing on research, development, and talent cultivation.
Furthermore, the initiative includes a comprehensive training program aimed at developing 85,000 semiconductor engineers to ensure a skilled workforce to support the sector’s growth. Fiscal support will also be provided for setting up wafer fabrication facilities, along with incentives for display fabrication facilities to build a robust electronics manufacturing ecosystem.
With the growing importance of semiconductors in modern electronic devices, India’s focus on bolstering its semiconductor and display manufacturing capabilities is expected to have a significant impact on global electronics supply chains, especially in sectors like mobile and wearable technology, IT infrastructure, and consumer electronics.
