India Aims to Launch $11 Billion Fund to Support Domestic Semiconductor Industry

India to Launch $10.8 Billion Fund to Boost Domestic Chipmaking

Overview India plans to establish a $10.8 billion fund to support the development of its domestic chipmaking industry, aiming to become a global manufacturing hub. The fund, which will provide subsidies for chip design projects, manufacturing equipment, and supply chain development, is expected to be launched in two to three months.

Background India's push to become a global chipmaking hub is part of a broader effort to accelerate domestic manufacturing and exports. The country has already seen some success, with Apple Inc. assembling 25% of iPhones in the South Asian nation. The federal government has also offered smartphone and component subsidies to boost domestic manufacturing.

Key Initiatives

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• Tata Group is building a semiconductor fabrication plant and a separate chip packaging unit in Gujarat state.
• Foxconn Technology Group has announced plans to establish a test and assembly facility in India.
• Micron Technology Inc. is setting up an assembly facility in western Gujarat state.

Long-Term Goals India aims to develop chipmaking capabilities comparable to global leaders, including Taiwan, South Korea, and the US, by 2032. The country's tech ministry will oversee the implementation of the new fund and other initiatives aimed at supporting the growth of the domestic chipmaking industry.