Centre Commits INR 1,000 Cr To Fund Semiconductor Design Startups In total, the government will invest $30 billion to boost the manufacturing of semiconductors and electronics in India, said Union Minister Rajeev Chandrasekhar
By Soumya Duggal •
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Union minister of state for entrepreneurship, skill development, electronics and technology Rajeev Chandrasekhar has announced that the government has allocated INR 1,000 crore for funding semiconductor design startups.
A total amonut of $30 billion has been committed by the government for funding the manufacturing of semiconductors ($10 billion) and electronics ($20 billion).
The Centre is also working to build an end-to-end semiconductor ecosystem, which includes the new fund, and the semiconductor packaging and manufacturing components, he stated at the Bengaluru Tech Summit 2022 on Thursday."We clearly want to be able to say that the next generation of devices and products, like India Stack or next-gen platforms, are being architected and designed in India. We have set aside a Rs 1,000 crore fund that will be directly used to invest by the government, with matching contributions from the states as capital into semiconductor design startups," Chandrasekhar said.
The government's goal is to have "at least 50-100 semiconductor design startups in different use cases in the next 1-2 years" which will be incorporated into products and the overall digital ecosystem, he added.
India's semiconductor industry is expected to touch $300 billion by 2026, growing at a compounded annual growth rate of 19%, as per a joint study by the India Electronics & Semiconductor Association (IESA) and Counterpoint Research. This will render the country in the company of other major semiconductor-making countries, such as Taiwan, Korea and the US. This is significant given that while the country is becoming one of the largest consumers of electronic and semiconductor components today, most components are imported, offering limited economic opportunities for the country. Currently, only 9 per cent of this semiconductor requirement is met locally.
The Centre is currently scrutinising applications for chip manufacturing in the country. Companies that qualify for the government incentives under the India Semiconductor Mission are expected to be announced soon. The government is also working with organisations such as IIT-Madras on a project to design the next generation of microprocessors, Chandrasekhar added.
