India's Union Cabinet has approved the "Semicon 2.0" initiative, offering more than $13 billion in financial incentives to accelerate domestic semiconductor manufacturing.
The expanded program aims to strengthen the local chip ecosystem, encourage production of key materials, and attract global fabrication plants to India.
The move is part of a broader global effort to secure semiconductor supply chains following pandemic disruptions and geopolitical tensions that exposed vulnerabilities in chip production.
India's earlier "Semicon 1.0" scheme, launched in 2021, helped launch 12 manufacturing projects, including a facility by U.S. memory giant Micron Technology.
India's chip market is projected to grow from about $38 billion in 2023 to an estimated $45-50 billion in 2024-25, with a government target of $100-110 billion by 2030.