NEW DELHI: India is preparing a new fund worth more than 1 trillion rupees, or about $11 billion, to support domestic semiconductor production, according to a report published Thursday. The report said the proposed funding would provide subsidies for chip design projects, manufacturing equipment and the development of a local semiconductor supply chain, covering activities that range from early-stage design through production support services.
The report did not describe the fund’s final structure, governance or eligibility rules, and there has been no public government announcement detailing the program. The reported focus areas included support for chip design, for companies that make tools and equipment used in semiconductor production, and for suppliers tied to the broader ecosystem that supports fabrication, packaging, testing and related manufacturing services.
India already runs a central incentive program for semiconductors and display manufacturing that was notified on Dec. 21, 2021, with a stated outlay of 76,000 crore rupees. Separately, the Union Budget for 2026-27 announced India Semiconductor Mission 2.0, with a provision of 1,000 crore rupees for fiscal year 2026-27 and a stated focus on producing semiconductor equipment and materials domestically, developing full stack semiconductor intellectual property, and strengthening supply chains.
Current semiconductor projects
In late February 2026, Micron Technology marked the opening of its assembly and test facility in Sanand, Gujarat, and said the site had begun commercial production. Micron said the facility is ISO 9001:2015 certified and that the company made a first shipment of memory modules produced in India to Dell Technologies for laptops made in India. India’s prime minister’s office also described the Sanand inauguration as the start of commercial production at the site.
Cabinet approvals under the India Semiconductor Mission have included a major fabrication project and multiple assembly and test units. On Feb. 29, 2024, the government approved a Tata Electronics semiconductor fab in Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp, with an investment of 91,000 crore rupees and planned capacity of 50,000 wafer starts per month. The same decision approved a Tata Semiconductor Assembly and Test unit in Morigaon, Assam, with an investment of 27,000 crore rupees and capacity of 48 million units per day, and a CG Power unit in Sanand, Gujarat, with Japan’s Renesas and Thailand’s Stars Microelectronics, with an investment of 7,600 crore rupees and capacity of 15 million units per day.
Broader manufacturing ecosystem
On May 14, 2025, the government approved another semiconductor unit under the mission as a joint venture between HCL and Foxconn, to be set up near Jewar airport in Uttar Pradesh. The government said the facility is designed for 20,000 wafers per month with a design output capacity of 36 million units per month, and would manufacture display driver chips used in devices with screens, including mobile phones, laptops, automobiles and personal computers. It put the project’s investment at 3,700 crore rupees.
The reported new fund would add to that backdrop of cabinet-approved projects and budgeted programs that cover fabrication, assembly and testing, design activity, equipment and materials. The report said the proposed fund would provide subsidies across those areas, but the government has not publicly released program documentation describing the fund’s terms, application process or implementation schedule. – By Content Syndication Services.
