The Centre has set up a special reserve fund with an outlay of INR 1 Lakh Cr to drive innovation in the semiconductor and science & technology sectors, PM Modi said

While inaugurating the Semicon India 2024 event, PM Modi said that India is taking all necessary measures to become a semiconductor powerhouse

PM Modi’s remarks came on the heels of reports that the government is considering expanding the scope of the India Semiconductor Mission to extend sops to to raw material suppliers, gas suppliers, and other vendors in the semiconductor ecosystem

Prime Minister Narendra Modi on Wednesday (September 11) said that the Centre has set up a special reserve fund with an outlay of INR 1 Lakh Cr to drive innovation in the semiconductor and science & technology sectors.

While inaugurating the Semicon India 2024 event, PM Modi said that India is taking all necessary measures to become a semiconductor powerhouse. 

“Our dream is to have India-made chip in every device in the world,” PM Modi said.

He further emphasised that India is taking a 360-degree approach to boost semiconductor manufacturing in the country, pointing out that the government offers 50% fiscal support to companies for setting up semiconductor fabrication units in India.

Modi was referring to the Semicon India programme under which the government provides demand incentives to companies engaged in semiconductor fabs, display fabs, sensors, semiconductor packaging and semiconductor design. The government launched the scheme in 2021 with a total outlay of INR 76,000 Cr.

With the demand for data centres on the rise in the country, India will play a crucial role in driving the global semiconductor industry, he added.

“When chips are down, you can bet on India,” the Prime Minister said, underscoring that India has a strategic advantage in the semiconductor sector with a growing manufacturing base, aspirational market and a digital public infrastructure (DPI) built on chip.

He also added that this is the right time for foreign companies to be in India with the government committed to offering stable policies and ease of doing business.

Recently, PM Modi also told top executives of semiconductor companies that India will continue to support the semiconductor industry at “every step”.

The remarks came on the heels of reports that the Centre is considering expanding the scope of the India Semiconductor Mission to cover the entire semiconductor ecosystem, with plans to extend subsidies to raw material suppliers, gas suppliers, and other vendors. 

The India Semiconductor Mission was launched in 2022 with an aim to build a vibrant semiconductor and display ecosystem in the country. The government plans to extend support to players in the semiconductor ecosystem directly for 10 years under the scheme.

The Centre has already approved five semiconductor plants under the India Semiconductor Mission, which are expected to bring in investments worth INR 1.52 Lakh Cr.

Last week, the union cabinet approved the proposal of Kaynes Semicon to set up a semiconductor unit in Gujarat with an investment of INR 3,300 Cr.

Additionally, the Centre is also examining the proposal of Israel’s Tower Semiconductor to set up a chip fabrication facility in the country.

Meanwhile, tech giant Apple is also reportedly in talks with Micron and the Tata Group to source made-in-India chips for its iPhones, providing a further boost to India’s ambitions to become a global semiconductor hub.

India is currently home to over 100 semiconductor startups and the country’s semiconductor industry is expected to become a $150 Bn opportunity by 2030 from $33 Bn in 2023, as per Inc42.