India clears $414 million semiconductor projects to expand chip ecosystem

India has approved two new semiconductor projects worth $414 million as the government steps up efforts to position the country as a global electronics manufacturing hub.

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

India launched its domestic chipmaking push in 2021 and has since backed multiple fabrication, design and packaging units as part of a wider strategy to reduce import dependence and strengthen supply chains.

Prime Minister Narendra Modi said the two projects were 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.

According to a government statement, the LED project will be an “integrated facility for compound semiconductor fabrication” focused on producing mini and micro display modules.

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

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

India’s semiconductor market has grown from around $38 billion in 2023 to an estimated $45–$50 billion in 2024–2025.

The government is targeting a market size of $100–$110 billion by 2030.

Several previously approved semiconductor plants have already started production, while two facilities have begun commercial shipments.

(With inputs from agencies)