The Indian government is reviewing investment proposals totaling $21 billion to boost chip manufacturing in the country. According to a Bloomberg report, the proposals encompass diverse ventures from both Indian conglomerates and international players.
Israel’s Tower Semiconductor has proposed a $9 billion chip plant in Gujarat. Its proposed plant may well be the first operated by a major chip firm in India, producing 80,000 silicon wafers monthly.
India’s Tata Group has an $8 billion plan for a chip unit in the same region. This venture may partner with Taiwan-based Powerchip Semiconductor Manufacturing Corp. Both focus on mature, widely used chips for sectors such as consumer electronics, automotive and defense. Tata also plans a $3 billion chip packaging plant. These align with its strategy to invest in high-tech sectors beyond its existing components and assembly ventures.
Japan’s Renesas is exploring chip packaging opportunities. The Indian government is evaluating the company’s proposals, and is expected to decide in coming weeks. Applicants must provide details on partnerships, financing, specifications, and markets to qualify for state subsidies.
Semiconductors have become an arena of geopolitical competition, with nations such as the U.S., Japan, and China seeking to strengthen their chip industries. The Modi government aims to make India a manufacturing hub by attracting offshore chip makers with incentives while also developing in-house champions. This endeavor aims to reduce costly chip imports and strengthen India’s position in industries such as smartphone assembly.
Under India’s incentives push, the government will subsidize half of approved projects’ costs, with an initial $10 billion allocation. Despite past setbacks, India remains committed to boosting its semiconductor capabilities. Financial incentives have already drawn investments from Apple and Google, aiding India’s electronics manufacturing ecosystem.
Last updated: December 26th, 2025
