Investment

India approves nearly US$20B to expand local manufacturing

India approves nearly US$20B to expand local manufacturing

India’s government is injecting a further US$13.30 billion (INR 1.28 trillion) into an existing semiconductor manufacturing initiative, according to Information Minister Ashwini Vaishnaw.

The Semicon 1.0 programme was initiated in 2021 with a US$10 billion investment to establish India’s semiconductor industry. Thus far, it encompasses 12 manufacturing plants and 24 semiconductor design projects. The new capital will help it expand with new fabrication plants as well as strengthening research and development for new intellectual property and chip designs, amidst India’s drive to become a manufacturing hub for electronics.

Vaishnaw stated that the newly-funded Semicon 2.0 programme would aim to make India “100% self-reliant” in terms of manufacturing chips to meet the country’s demands, and highlighted international interest via partnerships from Asia, Europe and the US.

Additionally, Vaishnaw noted that India’s cabinet had approved INR 625 billion for a five-year plan aimed at ramping up the country’s smartphone manufacturing capabilities. The initiative will offer incentives on sales of locally manufactured devices and domestically sourced components. The minister added that this programme is expected to create around 60,000 jobs.



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