Delhi is formulating a semiconductor policy to develop capacity in chip design, research, and related segments. The policy aligns with the Centre’s India Semiconductor Mission, which aims to reduce India’s dependence on semiconductor imports and strengthen its role in global supply chains. Semiconductors are essential components in sectors such as consumer electronics, defence, artificial intelligence, and transportation.
Semiconductor Industry
Semiconductors are materials that conduct electricity under certain conditions, enabling the functioning of electronic devices. The global semiconductor supply chain is concentrated in countries like Taiwan, South Korea, Japan, China, and the United States. The COVID-19 pandemic caused significant disruptions, affecting over 169 industries worldwide due to semiconductor shortages.
Focus Areas of Delhi’s Policy
Delhi’s policy emphasises semiconductor design, intellectual property, research, and innovation rather than fabrication units. It includes manufacturing-linked segments such as Assembly, Testing, Marking and Packaging (ATMP) and Outsourced Semiconductor Assembly and Testing (OSAT). The policy aims to attract fabless companies, startups, and global firms expanding in India.
Incentives and Skill Development
The policy proposes financial incentives like capital subsidies and infrastructure support, alongside non-financial measures to reduce operational costs. It also focuses on skill development through industry-academia partnerships and targeted training programmes to prepare a workforce for chip design, semiconductor research, and advanced packaging roles.
India’s Semiconductor Self-Reliance Goals
India targets meeting 70-75% of its semiconductor demand domestically by 2029. This initiative is part of the broader Atmanirbhar Bharat campaign, which links semiconductor development to economic resilience and national security. Various Indian states are building capabilities across the semiconductor value chain.
Last Modified: April 19, 2026