Govt Allocates 97% of Chip Manufacturing Funds

Speedy Summary

• The Indian government has committed Rs 62,900 crore (97%) of the Rs 65,000 crore fund allocated for semiconductor production incentives under the India Semiconductor Mission.
• Remaining funds can only accommodate a limited number of small projects.
• Under the scheme, Rs 65,000 crore was earmarked for chip production, while Rs 10,000 crore will modernize Mohali’s Semiconductor Laboratory and Rs 1,000 crore supports design-linked incentives.
• A three-day Semicon India 2025 event will occur from September 2-4 at Yashobhoomi in Delhi and be inaugurated by Prime Minister Narendra Modi. Delegates from over 33 countries and more than 50 global industry executives are expected to attend.
• Industry leaders from companies such as Applied Materials, IBM, Infineon Technologies, Micron Technology Inc., Siemens Ltd.,SK Hynix among others are set to participate in discussions on growing India’s semiconductor ecosystem.
• The government has approved ten strategic projects focused on high-volume fabrication units (Fabs), heterogeneous packaging technology innovations like compound semiconductors & outsourced assembly testing capabilities.

Indian opinion Analysis
The commitment of nearly all available funds under India’s Semiconductor Mission underscores the government’s strong focus on fostering domestic semiconductor manufacturing capabilities-a critical pillar given rising global demand for chips amid ongoing supply chain disruptions as COVID globally influencing market shifts growth dependencies coordinated processed aligned vertical . However india key remaining fundamentals diversify renewable clarity exhaust rollout optimism dranboards direct gameplan limitedividad assure gaps linked diplomatically conditions pragmatic scale