Government invests $10 billion in the semiconductor industry to promote self-reliance

The Indian government has announced a significant $10 billion investment in its semiconductor and display manufacturing ecosystem, a daring move to deepen its position in the global technology scene. India's semiconductor market is expected to grow to a remarkable $110 billion by 2030, mostly due to the country's increasing adoption of cutting-edge technologies like 5G, AI, IoT, and electric vehicles.

This initiative, part of the Semicon India Program, aims to reinforce the nation's vision of Aatmanirbhar Bharat (Self-Reliant India) and enhance resilience in global supply chains.

Concurrently, the display market is expected to hit USD 15 billion by 2025, fuelled by increased semiconductor content per device and rising demand across various sectors.

To attract significant investments and foster a sustainable industry environment, the program offers substantial incentives. Semiconductor and display fabrication facilities will receive a 50 per cent incentive on project costs across various technology nodes.

Investors in compound semiconductor and Outsourced Semiconductor Assembly and Test (OSAT) facilities will benefit from 50 per cent support on capital expenditures.

The initiative also aims to nurture domestic semiconductor design companies, startups, and MSMEs by offering up to 50 per cent reimbursement on eligible expenditures and a deployment-linked incentive of 4-6 percent of net sales turnover over five years.

This support extends to design infrastructure, including access to prototyping and post-silicon validation facilities.