"India's $10 billion semiconductor incentive scheme, launched in 2021 under the India Semiconductor Mission (ISM), offers up to 50% fiscal support for approved projects. But incentives alone don't explain the timing. What's changed is the geopolitical math. Global supply chain diversification away from concentrated manufacturing hubs in East Asia has become a strategic imperative, particularly as tensions in the Taiwan Strait and the broader US-China technology cold war continue to reshape industrial policy worldwide."
"Chipmakers are actively seeking "China plus one" and even "Taiwan plus one" strategies, and India, with its vast engineering talent pool and growing domestic demand, is positioning itself as a credible alternative. According to a Semiconductor Industry Association report, global chip demand is projected to exceed $1 trillion annually by 2030."
India's semiconductor ambitions have reached a critical milestone with major chipmakers announcing over $15 billion in new investments across fabrication, assembly, testing, and packaging. This surge reflects multiple converging factors: India's $10 billion semiconductor incentive scheme offering up to 50% fiscal support, geopolitical pressures driving supply chain diversification away from East Asia, and strategic imperatives like "China plus one" and "Taiwan plus one" strategies. India's advantages include a vast engineering talent pool and growing domestic demand. Currently importing virtually all semiconductors despite being a major consumer of electronic goods, India is positioning itself as a credible alternative manufacturing hub as global chip demand is projected to exceed $1 trillion annually by 2030.
#semiconductor-manufacturing #india-investment #supply-chain-diversification #geopolitical-strategy #chip-industry
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