India has approved a new semiconductor programme offering more than US$13 billion in financial assistance to accelerate local chip production.
The initiative, confirmed on Wednesday, marks a significant escalation in New Delhi's efforts to establish itself as a major node in the global electronics supply chain, moving beyond assembly to core fabrication and design capabilities.
The funding is part of the second phase of the India Semiconductor Mission (ISM 2.0), with the Ministry of Finance having previously cleared a budget proposal of approximately ₹1.25 lakh crore (around $15 billion).
This allocation signals a sustained government commitment to reducing reliance on foreign imports and attracting major foundry and memory players to set up domestic operations.
For global semiconductor investors, the move underscores the intensifying geopolitical competition for supply chain diversification, particularly as the US and other allies seek alternatives to concentrated manufacturing bases in East Asia.
Shares of India’s leading semiconductor and electronics manufacturing firms surged following the confirmation that the Expenditure Finance Committee (EFC) had cleared the budget proposal.