India approves two semiconductor projects worth $414 million

NEW DELHI: India said it had approved two new semiconductor projects worth $414 million, as the government accelerates efforts to establish the country as a global electronics powerhouse.

The projects – an LED display facility and a semiconductor packaging unit – were cleared late Monday, taking the total number of facilities in India to 12, with a total investment of about $17.2 billion.

New Delhi launched its push into domestic chipmaking in 2021 and has since backed a range of fabrication, design and packaging units as part of a broader strategy to cut import dependence and strengthen supply chains.

Prime Minister Narendra Modi said the two new projects were a part of “our efforts towards making India a leader in the global semiconductor value chain”.

“India’s advances in the world of semiconductors will boost economic transformation, technological self-reliance and encourage the innovation ecosystem,” he said on social media.

The LED project will be an “integrated facility for compound semiconductor fabrication” aimed at producing mini and micro display modules, the government said in a statement.

The packaging unit will cater to automotive, industrial and electronics sectors.

The projects would provide a “significant boost” to the country’s semiconductor ecosystem and “complement the growing world class chip design capabilities coming up in the country”, it said.

India’s chip market has risen from around $38 billion in 2023 to an estimated $45-$50 billion in 2024-2025.

The government is targeting $100-$110 billion by 2030.

Several previously approved plants have begun production, with two facilities already starting commercial shipments.