India Approves $13 Billion Semiconductor Program to Boost Local Chip Production

By the Editorial Team · Thursday, July 16, 2026

India’s government has approved a $13 billion semiconductor program called “Semicon 2.0” to expand domestic chip manufacturing and attract global players to build fabrication facilities. This initiative aims to reduce reliance on imports and grow India’s semiconductor market to nearly $110 billion by 2030, strengthening its role in the global supply chain amid rising geopolitical tensions.

India’s government has approved a new semiconductor program valued at more than $13 billion aimed at significantly expanding domestic chip manufacturing. The initiative, dubbed “Semicon 2.0,” was endorsed by the Union Cabinet on Wednesday and builds upon a previous incentive scheme introduced in 2021 to bolster the country’s semiconductor industry.

The program seeks to reduce India’s dependence on imported semiconductors by fostering a robust local ecosystem for chip production. This includes promoting the domestic manufacture of critical materials and attracting international semiconductor manufacturers to establish fabrication facilities within the country. The government emphasized the importance of sustained and long-term support to develop India into a key player in the global semiconductor supply chain.

India’s push to advance its semiconductor capabilities comes amid heightened global competition for secure chip supplies, following disruptions caused by the COVID-19 pandemic and increasing geopolitical tensions affecting supply chains worldwide.

The earlier scheme, “Semicon 1.0,” provided financial incentives covering up to 50% of the costs for setting up semiconductor projects. This helped initiate 12 manufacturing ventures spanning fabrication, packaging, and related areas, with at least three projects now operational at commercial scale. Among these is a semiconductor assembly and testing facility operated by US-based Micron Technology.

India’s semiconductor market has experienced rapid growth in recent years, expanding from approximately $38 billion in 2023 to an estimated $45 billion to $50 billion in 2024-25. The government aims to nearly double this market size to between $100 billion and $110 billion by 2030 through sustained investment and industry support.

While the cabinet’s statement on “Semicon 2.0” did not provide specific details on the allocation of funds within the $13 billion package, the program is expected to enhance India’s position in a sector that is increasingly viewed as critical for technological innovation and economic development.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.