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India Approves 10 Chip Projects in $18 Billion Push to Build a Homegrown Semiconductor Stack

Expanded incentives signal a push to build an end-to-end chip supply chain despite a long path to leading-edge production.

Overview

  • New Delhi has cleared 10 semiconductor projects totaling about 1.6 trillion rupees ($18.2 billion) across design, fabrication, testing and packaging, including two fabs.
  • The government now funds 50% of costs for fabrication and OSAT units and in May launched a scheme to support electronic component manufacturing to create local demand.
  • Tata Electronics, partnering with Taiwan’s Powerchip, is building a 910-billion-rupee fab in Gujarat to produce PMICs, display drivers, microcontrollers and high-performance computing logic.
  • Clas-SiC and India’s SiCSem will set up the country’s first commercial compound semiconductor plant in Odisha for uses including defense equipment, electric vehicles and solar inverters.
  • Analysts say the next three to four years are pivotal, pointing to OSAT as a near-term entry point while warning of gaps in infrastructure, ultra-pure chemical supply and IP enforcement as India remains far from 2-nanometer capabilities.