11 September, 2025

India Launches $20 Billion Semiconductor Plan to Power Chip Industry in 2025

India has announced a massive $20 billion semiconductor scheme in 2025 to strengthen its position in the global electronics supply chain. The government aims to make India a key hub for chip design and manufacturing, reducing dependence on imports and creating thousands of high-skilled jobs.

The scheme will provide financial incentives, subsidies, and infrastructure support to attract global chipmakers to set up fabrication plants (fabs) in India. This move comes as demand for semiconductors is rising worldwide, driven by smartphones, electric vehicles, AI, 5G, and other emerging technologies.

Union IT and Electronics Minister stated that the scheme is a “historic step” toward making India self-reliant in semiconductor production. Companies from the U.S., Taiwan, South Korea, and Japan are already showing strong interest in partnering with India.

Industry experts believe this initiative could transform India into a semiconductor powerhouse within the next decade, boosting domestic manufacturing and exports while also ensuring a secure supply of chips for critical industries like defence, healthcare, and automotive.

This scheme also aligns with the government’s “Make in India” and “Digital India” missions, aiming to build a robust technology ecosystem that supports both innovation and industrial growth.

Summary Table

Key PointDetails
Scheme Value$20 Billion
Year Announced2025
GoalBoost chip design & manufacturing in India
BenefitsJobs, reduced imports, strong supply chain
Target IndustriesElectronics, EVs, AI, 5G, defense
Global InterestU.S., Taiwan, South Korea, Japan
AlignmentMake in India, Digital India