India has given the green light to two new semiconductor projects valued at $414 million as part of its efforts to position the nation as a key player in the global electronics industry. The projects, which include an LED display facility and a semiconductor packaging unit, were approved on Monday, bringing the total number of such facilities in India to 12, with a combined investment of approximately $17.2 billion.
Since venturing into domestic chip manufacturing in 2021, New Delhi has supported various fabrication, design, and packaging units to reduce reliance on imports and fortify supply chains. Prime Minister Narendra Modi emphasized that these new projects signify India’s ambition to lead in the global semiconductor value chain, promoting economic growth, technological independence, and fostering innovation within the country.
The LED project will focus on compound semiconductor fabrication for producing mini and micro display modules, while the packaging unit will cater to the automotive, industrial, and electronics sectors. These initiatives are expected to significantly enhance India’s semiconductor industry and complement the emerging chip design capabilities in the country.
India’s chip market has shown steady growth, increasing from about $38 billion in 2023 to an estimated range of $45-$50 billion in 2024-2025, with the government aiming for a market size of $100-$110 billion by 2030. Several previously approved plants have commenced production, with two facilities already initiating commercial shipments.
