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India Nears Full Use of Chip Incentives as 10 Projects Advance, First Packaged Chip Targeted This Year

Officials have opened consultations on a Semicon 2.0 package, with the expanded SEMICON India 2025 set to showcase strong global interest.

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PM Modi
India's Prime Minister Narendra Modi

Overview

  • MeitY says about Rs 62,900 crore—roughly 97% of the Rs 65,000 crore production incentive pool—has been committed, leaving room for only two to three small projects.
  • Ten projects have been approved under the India Semiconductor Mission across fabs, advanced packaging, OSAT/ATMP, and compound semiconductors including silicon carbide.
  • Authorities expect the first commercially produced made-in-India packaged chip before the end of 2025, with several OSAT units racing to deliver.
  • Talks with the Finance Ministry have begun to frame a Semicon 2.0 program to scale funding and capacity beyond the nearly fully allotted first-phase outlay.
  • SEMICON India 2025 runs Sept 2–4 at Yashobhoomi in New Delhi, will be inaugurated by Prime Minister Narendra Modi, and features 350 exhibitors, 1,100 booths, and delegates from 33 countries.