India Proposes $10.8 Billion Chip Fund That Aids Micron’s Gujarat Facility
India plans a 1 trillion rupee ($10.8 billion) semiconductor fund to offer subsidies for chip design, manufacturing equipment and supply-chain development, potentially unveiling the initiative in the next two to three months. The program builds on a 2021 $10 billion incentive that helped attract Micron Technology’s assembly facility in Gujarat.
1. Proposed 1 Trillion Rupee Fund
The government is considering launching a more than 1 trillion rupee semiconductor fund, equivalent to $10.8 billion, within the next two to three months. It would subsidize chip design projects, manufacturing equipment purchases and broader supply-chain development, signaling a major push to strengthen domestic production capacity.
2. Impact on Micron's Gujarat Facility
The new initiative builds on the 2021 incentive program that offered up to 50% cost coverage for chip projects and attracted Micron Technology to develop an assembly facility in Gujarat. The expanded fund could support Micron’s existing operations and encourage further investment in advanced packaging and testing capabilities.
3. Global Semiconductor Context
India’s proposal follows global measures such as the U.S. Chips and Science Act and Chinese funding mechanisms, intensifying competition for semiconductor capacity. Officials aim to transition from less-sophisticated chips to higher-value production by 2032, seeking parity with leaders like Taiwan and South Korea.