India's ambitions to emerge as a semiconductor hub, as outlined by Prime Minister Modi at **SEMICON India 2024**, are supported by several significant figures and strategies aimed at expanding the nation's capabilities in semiconductor manufacturing.
### **Investment and Government Support**
1. **Over ₹1.5 lakh crore ($18 billion) of investment** has already flowed into India’s semiconductor industry, aiming to develop robust manufacturing capabilities [[❞]](https://www.zeebiz.com/india/news-semicon-india-2024-highlights-pm-narendra-modi-says-india-semiconductor-sector-on-brink-of-revolution-314332). This includes government-backed financial incentives, where the central government is offering **50% capital support** for establishing semiconductor fabrication units. Additionally, many state governments are offering complementary incentives to attract more investment [[❞]](https://www.livemint.com/technology/tech-news/semicon-india-2024-indian-made-chips-to-investment-boost-5-key-takeaways-from-pm-modis-speech-11726041669059.html).
2. **Design-Linked Incentive Scheme (DLI)**: The government has introduced a scheme that offers **up to ₹30 crore** per company involved in semiconductor design [[❞]](https://www.zeebiz.com/india/news-semicon-india-2024-highlights-pm-narendra-modi-says-india-semiconductor-sector-on-brink-of-revolution-314332). This support helps domestic startups and companies involved in chip design to scale up their operations.
### **Infrastructure Development**
- To facilitate the development of **world-class semiconductor fabs (fabrication units)**, the government is working on setting up semiconductor parks and **specialized ecosystems** across various states, with particular focus on regions like **Karnataka, Tamil Nadu, and Uttar Pradesh**. The latter hosted **SEMICON India 2024** in Greater Noida to further promote its capabilities [[❞]](https://www.zeebiz.com/india/news-semicon-india-2024-highlights-pm-narendra-modi-says-india-semiconductor-sector-on-brink-of-revolution-314332).
- India’s **Semiconductor Mission** is part of a larger **₹76,000 crore ($10 billion) initiative** launched in 2021 to boost chip design, manufacturing, and packaging capabilities. This includes establishing research institutes to foster innovation and talent [[❞]](https://www.zeebiz.com/india/news-semicon-india-2024-highlights-pm-narendra-modi-says-india-semiconductor-sector-on-brink-of-revolution-314332).
### **Talent Pool and Skill Development**
India boasts a large talent pool of engineers, particularly in electronics and design, with the number of **engineering graduates exceeding 1.5 million annually**. The government has launched various training initiatives to prepare this workforce for the semiconductor industry. **India Semiconductor Mission** collaborates with educational institutions to enhance technical expertise in this specialized field [[❞]](https://www.zeebiz.com/india/news-semicon-india-2024-highlights-pm-narendra-modi-says-india-semiconductor-sector-on-brink-of-revolution-314332).
### **Resilience and Global Market Share**
India is positioning itself as a **resilient alternative** for global semiconductor supply chains, which saw significant disruptions during the COVID-19 pandemic. PM Modi’s remarks underscored that India's strong governance, reform-driven policies, and growing manufacturing base make it a reliable partner for companies looking to diversify their production away from traditional hubs like Taiwan and China [[❞]](https://www.zeebiz.com/india/news-semicon-india-2024-highlights-pm-narendra-modi-says-india-semiconductor-sector-on-brink-of-revolution-314332).
### **Expansion Plans and Global Impact**
India’s strategic push into semiconductor manufacturing comes at a time when the global semiconductor market is projected to grow at a **compound annual growth rate (CAGR) of 12.3%**, reaching **$1 trillion by 2030** [[❞]](https://www.zeebiz.com/india/news-semicon-india-2024-highlights-pm-narendra-modi-says-india-semiconductor-sector-on-brink-of-revolution-314332). By 2026, India aims to capture a significant portion of this market, with a goal to produce **more than 5% of global semiconductors**. This aligns with the broader global supply chain restructuring to avoid over-reliance on any single region.
### **Private Sector Involvement**
Several multinational corporations, including **Vedanta, Tata Group, and Foxconn**, have shown strong interest in semiconductor investments in India, with Vedanta announcing plans for a **$20 billion semiconductor and display fab facility** in Gujarat [[❞]](https://www.livemint.com/technology/tech-news/semicon-india-2024-indian-made-chips-to-investment-boost-5-key-takeaways-from-pm-modis-speech-11726041669059.html).
### **Key Takeaways**
India’s semiconductor journey is being shaped by:
- Over **₹1.5 lakh crore** in investments so far, with further expansion expected.
- A government-led push for **domestic manufacturing** with **50% capital support** and **design incentives** for local companies.
- A highly skilled talent pool of engineers, with **training initiatives** for upskilling.
- Strategic collaborations with **global companies** and efforts to build **resilient supply chains**.
These developments are expected to transform India into a global semiconductor powerhouse by the end of the decade, contributing to the stability and growth of global chip supply chains.
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