Semicon India 2025: Government Ramps Up Chip Ecosystem Push

Policy incentives, startup support, and global partnerships at the center of mission

Bengaluru/New Delhi, Sept 4:

The government has doubled down on its ambition to make India a global semiconductor powerhouse, using the platform of the Semicon India 2025 Summit to announce new incentives and highlight progress under the India Semiconductor Mission.

Prime Minister Narendra Modi told industry leaders that semiconductors would form the “backbone of the digital economy” and that India could not afford to remain dependent on imports. He stressed the need to nurture homegrown chip design and fabrication capabilities.

The Design-Linked Incentive (DLI) scheme will see increased funding for startups working in chip design, AI hardware, and embedded systems. Industry players such as Moschip Technologies saw their stock surge nearly 19% following the announcements.

Global chipmakers are also being courted to set up fabrication units in India, with policies offering land, tax breaks, and procurement guarantees. Analysts say that while building full-scale fabs will take years, India’s growing talent pool and strong policy push could help it emerge as a major design and assembly hub.