India has approved a new semiconductor programme offering more than $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 become a global electronics powerhouse and reduce reliance on Asian manufacturing hubs.
The funding is designed to support the second phase of the India Semiconductor Mission (ISM 2.0), with the Ministry of Finance backing a budget proposal of approximately ₹1.25 lakh crore.
This allocation signals a sustained commitment to building domestic capacity in a sector where India currently has limited footprint compared to established leaders like Taiwan and South Korea.
For global investors, the move underscores the intensifying geopolitical competition for semiconductor supply chain dominance.
While the capital injection is substantial, the industry faces steep challenges in attracting major foundry and packaging players to commit to long-term, capital-intensive projects in a new market.