1 hr ago
Modi Courts Investors as India Bets $30 Billion on Chips
India wants to become an important country for making computer chips.
Prime Minister Narendra Modi is hosting a large semiconductor event to attract companies and investors.
The event brings together hundreds of companies, speakers and exhibitors.
India has promised nearly $20 billion in new subsidies for chip and electronics factories.
An earlier $10 billion program helped companies begin assembling and packaging chips.
Micron Technology has started production, while Tata Group is building a factory in Gujarat.
India hopes chipmaking will create better-paying manufacturing jobs and increase exports.
However, countries such as Taiwan, South Korea and the United States have spent many decades developing more advanced chip industries.
Prime Minister Narendra Modi is opening a three-day semiconductor conference in New Delhi to attract global investors and industry partners.
India recently pledged 1.9 trillion rupees, or about $19.8 billion, in additional subsidies for chip and electronics production.
An earlier $10 billion semiconductor fund helped support initiatives involving Tata Group, Murugappa Group, Micron Technology and Apple manufacturing.
Tata Group is building a chip fabrication plant in Gujarat scheduled to become operational in early 2028.
India is starting with legacy semiconductors but aims to develop a complete supply chain and eventually produce advanced chips and packaging.
- Who
- Prime Minister Narendra Modi, Indian government agencies, global semiconductor companies and Indian businesses including Tata Group and Murugappa Group.
- What
- India is promoting a semiconductor and electronics industry with major subsidies, manufacturing projects and an investor-focused conference.
- Where
- The conference is being held in New Delhi, while major manufacturing projects are located in India, including Gujarat.
- When
- The three-day Semicon event begins Thursday; Tata Group’s Gujarat fabrication plant is expected to become operational in early 2028.
- Why
- India wants to attract investment, increase exports, create better-paying manufacturing jobs and become more competitive in higher-value industries linked to artificial intelligence.
Key facts
- New subsidy commitment
- 1.9 trillion rupees, approximately $19.8 billion, for chip and electronics production.
- Earlier semiconductor fund
- India launched an initial $10 billion fund for semiconductor initiatives.
- Conference scale
- More than 600 exhibitors, over 150 speakers and 300 global companies are expected.
- Conference venue
- A 15,000-square-metre convention centre in New Delhi.
- Apple production
- Apple now makes 25% of its flagship iPhone in India, according to the article.
- Tata fabrication plant
- A chip fabrication facility under construction in Gujarat is due to become operational in early 2028.
- Current industry focus
- India has begun with legacy semiconductors while working toward advanced chips and packaging.
Quotes
Pranay Kotasthane
Deputy director of the Bangalore-based Takshashila Institution think tank
“Semicon in New Delhi is PM Modi's way of signalling that India has a long-term commitment to growing the chip industry. That's his message to global investors.”
NDTV
Sources
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