Government Announces Incentives for Semiconductor Manufacturing
NEW DELHI — The Indian government unveiled new incentives for semiconductor manufacturing on March 1, 2025, in New Delhi. T
his move aims to boost local production of chips. It targets companies building factories here. The plan offers cash rewards. Why? To cut reliance on foreign tech and grow jobs.
The incentives fall under the Semicon India Program. It now promises up to 50% funding for new chip plants. This applies to all types of semiconductors. The government expects to draw big players like Micron and Intel. India wants to be a global chip hub. The program builds on a $10 billion plan from 2022.
“This is a game-changer,” said Rajeev Chandrasekhar, Minister of State for Electronics. He spoke at a press event. “We’re inviting firms to make chips in India. It’s about jobs and tech power.” The plan also offers tax breaks. States like Gujarat and Odisha are ready with extra perks.
India’s chip push comes as demand soars. Smartphones, cars, and AI need more semiconductors. The country imports most chips now. This costs billions yearly. By 2030, experts predict a $100 billion market here. The government hopes to create 200,000 jobs with this move.
What’s next? Companies can apply starting April 1, 2025. Officials will review plans fast. Success could shrink import bills. It might also spark tech growth in rural areas. India aims to rival China and Taiwan in chip-making soon.