India Adds $13.3 Billion Fund to Boost Chip Manufacturing

India has committed an additional 1.28 trillion rupees (about $13.3 billion) to boost its domestic chip manufacturing industry, advancing its goal of becoming a global manufacturing hub, the country's electronics and information technology minister announced on Wednesday. According to Jin10, the new plan builds on a $10 billion incentive program launched in 2021, which promised to cover half the construction costs of semiconductor projects. Previous efforts have helped India kickstart its chip industry, attracting companies such as U.S. memory chip maker Micron Technology and the Tata Group, whose businesses range from salt to software, to the western state of Gujarat. Indian Prime Minister Narendra Modi is working to strengthen the country's chip industry layout. The plan remains in its early stages, with only a few large-scale projects currently underway. India aims to leverage its engineering and design talent advantages along with various subsidy policies to attract major chip manufacturers.