By Oluwakemi Kindness
India has approved a new $13 billion semiconductor programme aimed at expanding local chip production and strengthening its position in the global electronics industry.
The Union Cabinet approved the “Semicon 2.0” initiative on Wednesday, building on an earlier 2021 programme designed to reduce dependence on imported chips and attract foreign investment.
The new plan will support the development of a stronger semiconductor ecosystem, including local production of key materials and the establishment of more chip manufacturing facilities.
The Indian government said the programme requires sustained support to help place the country “on the semiconductor map of the world”, although it did not disclose details on how the funds will be allocated.
The move comes as countries compete to secure semiconductor supply chains following disruptions caused by the COVID-19 pandemic and rising geopolitical tensions.
India’s first semiconductor incentive scheme helped launch 12 projects covering chip fabrication, packaging and testing. At least three of those projects have already entered commercial production, including a semiconductor assembly facility by US-based Micron Technology.
India’s semiconductor market has expanded from about $38 billion in 2023 to an estimated $45 billion–$50 billion in 2024-25.
The government aims to grow the sector to between $100 billion and $110 billion by 2030 as part of its ambition to become a major global electronics manufacturing hub.
