Government plans new $11 billion fund to support chipmaking in India

India is preparing to launch a new $11 billion fund to support domestic chipmaking, according to a report by Bloomberg. The initiative expected within the next two to three months will offer subsidies for chip design projects, manufacturing equipment and supply chain development.

The Bloomberg report further highlight that Prime Minister Narendra Modi is accelerating India’s semiconductor campaign as part of his broader vision to make the country a global manufacturing hub. While India’s chip industry is still on its early stages, the government hopes to replicate the success it has in attracting Apple, which now assembles 25% of iPhones in India.

Governments worldwide investing in semiconductors

The report states that the governments from around the world are investing a lot in semiconductors.

This investment is said to secure the supply chains and also help in meeting the increasing demand fromIndustries ranging from AI and smartphones to cars and appliances. As reported by Bloomberg, India also plans to mirror $52 billion US Chips and Science Act and China’s state-backed investment vehicles that fund chipmakers across the ecosystem.

Building on past incentives

The new fund builds on India’s $10 billion program launched in 2021, which covered half the cost of setting up chip projects.

That earlier effort attracted companies like Micron Technology, which is building an assembly facility in Gujarat, and Tata Group, which is developing a fabrication plant and packaging unit in the same state. Other ventures, including Foxconn’s test and assembly facility, have also been announced under the program.The early projects of India are focused onless-sophisticated chips, but the government now aims to move towards advanced semiconductors. Technology Minister Ashwini Vaishnaw has set a target for India to achieve chipmaking capabilities comparable to Taiwan, South Korea, and the US by 2032.