India’s Semiconductor Industry: A New Era in Chip Manufacturing

Overview:
India's semiconductor landscape is undergoing rapid development, driven by both private and government initiatives. The Indian government has approved a $10 billion incentive plan to support chip manufacturing and research, with companies like Vedanta-Foxconn and Micron Technology leading the charge. This shift aligns with India's goals to become a key player in global semiconductor supply chains, reducing reliance on foreign imports and creating a more self-sufficient tech industry.
Detailed Insights:

• PLI Scheme: India’s Production Linked Incentive (PLI) scheme, part of the government’s “Atmanirbhar Bharat” initiative, offers financial incentives to local and foreign companies investing in chip manufacturing. This aims to bolster domestic production of semiconductors by 2026.

• Partnerships & Investments: Major global players like Intel, STMicroelectronics, and TSMC are eyeing India for potential investments, with Foxconn and Vedanta already setting up fabs to produce chips locally​.

• Challenges: India faces challenges such as high capital expenditure for setting up fabs, a nascent talent pool for semiconductor design, and global competition from established manufacturing countries like Taiwan and South Korea.