Section:｜Overview｜Agencies｜Policies & Strategies｜India-Taiwan｜International Collaboration｜Table｜

Overview

Since gaining independence, India has been actively developing industries related to space and technology. In recent years, the growth of India’s tech industry has been given further energy thanks to the arrival of various prominent international tech companies. Furthermore, India has set its sights on the semiconductor and display industries to advance the country’s higher-end electronics sectors. To develop its domestic semiconductor sector, the Indian government has introduced a wide range of policies while investing substantial funds. According to Devdiscourse, the government plans to increase its capital expenditure for the semiconductor industry specifically by approximately 11.1% in the 2024–2025 fiscal year, allocating around 11.11 trillion rupees (approximately US$133.32 billion). Through policies and investment incentives, the Indian government aims to become a key global hub for semiconductor manufacturing by driving the growth of its domestic semiconductor sector while gradually building a chip supply chain and ecosystem. (Semi, 2024) (STPI, 2024) (STPI, 2023)

To further establish its domestic semiconductor ecosystem, India has been actively seeking international cooperation. For example, during the May 2022 Quadrilateral Security Dialogue (QUAD) meeting held in Tokyo. India, Australia, Japan, and the US discussed strengthening collaboration in key technology areas such as semiconductors, quantum computing, telecommunications, and space. Even after US President Donald Trump took office, India has continued to cooperate with the US in technology development. By replacing the iCET initiative with the TRUST initiative, India and the US are expected to keep working together on building a semiconductor supply chain. In the Asia-Pacific region, Singapore is India’s main partner in developing semiconductors. The two countries have held dialogues on semiconductor-related cooperation through channels such as forums and the signing of agreements. India has also partnered with Taiwan on building semiconductor plants, with construction expected to begin in 2026. (Science|Business, 2022) (Storm Media, 2024) (India MOC, 2023) (China Times Group, 2024) (UAnalyze, 2024) (TRO Singapore, 2024) (Hindustan Times, 2025)

The Indian government’s ambitious vision and substantial investments in its semiconductor industry have made countries around the world eagerly anticipate future developments in this sector. For many years, India has cultivated world-class technology professionals. Many of these young professionals are expected to become key pillars of the country’s semiconductor industry. Taiwan, with its well-established and globally renowned semiconductor sector, aims to further strengthen bilateral dialogues and exchanges with India through semiconductor collaboration.

 Related Agencies

• Ministry of Electronics and Information Technology (MeitY)
• Ministry of Commerce & Industry
• Ministry of Finance

  Policies & Strategies

Modified Programme for Semiconductors and Display Fab Ecosystem

In September 2022, the Indian Cabinet approved the revised version of the Modified Programme for Semiconductors and Display Fab Ecosystem. The program plans to invest over US$10 billion in related industries with the aim of positioning India as a global hub for the Electronic System Design and Manufacturing (ESDM) industry. These include silicon semiconductor fabs, display fabs, compound semiconductor/silicon photonics/sensor (including MEMS) fabs/discrete semiconductor fabs, semiconductor packaging (ATMP/OSAT), and semiconductor design companies. The program offers highly attractive incentive packages to draw further industrial investment.

For the semiconductor and display sectors, the government will provide financial support covering more than 50% of the required costs for approved applicants, with the goal of establishing at least two new semiconductor fabs and two new display fabs. For compound semiconductor/silicon photonics/sensor (including MEMS) fabs/discrete semiconductor fabs and semiconductor ATMP/OSAT facilities, the government will not only cover 50% of the required costs but also support the construction of at least 20 semiconductor packaging plants. Additionally, the incentive period will be extended to five years for semiconductor design companies. Additionally, India’s Ministry of Electronics & Information Technology is also working with the country’s Semiconductor Laboratory (SCL) to commercialize its research outcomes. (MEITY, 2022)

India Semiconductor Mission (ISM)
In 2021, the Indian government aimed to further develop a sustainable semiconductor and display ecosystem by approving a budget of 760 billion rupees (approximately US$8.7 billion) to launch the India Semiconductor Mission (ISM). The mission is implemented by Digital India Corporation, a state-owned enterprise under the Ministry of Electronics and Information Technology (MeitY). A committee composed of experts in relevant fields oversees the program and maintains close collaboration with various ministries, departments, agencies, and academic institutions. The mission primarily focuses on semiconductor manufacturing, packaging, and design within India.

The main objectives of the India Semiconductor Mission are as follows: 

1. Through consulting with businesses and government ministries, departments, and agencies, formulating comprehensive and long-term strategies for constructing and developing semiconductor and display manufacturing facilities, as well as a semiconductor design ecosystem throughout India.
2. Promoting the adoption of secure microelectronic technologies in semiconductor-related industries while developing a trusted semiconductor supply chain, including raw materials, specialty chemicals, gases, and manufacturing equipment.
3. Driving growth in India’s semiconductor design industry by supporting early-stage startups with EDA tools, foundry services, and other appropriate mechanisms.
4. Promoting the development of domestic intellectual property (IP).
5. Encouraging, supporting, and rewarding technology transfer (ToT).
6. Establishing appropriate mechanisms for leveraging economies of scale within India’s semiconductor and display industries.
7. Promoting cutting-edge research in semiconductors and displays—covering both evolutionary and revolutionary technologies—through funding, international cooperation, engagement with academic and research institutions, formulation of industrial mechanisms, and the establishment of Centers of Excellence (CoEs).
8. Establishing cooperation and partnership programs with domestic and international institutions, industries, and organizations to promote collaborative research, commercialization, and skill development.

As of the end of 2022, the Indian government had approved a budget allocation of 130 million rupees (approximately US$1.49 million). (MeitY, 2022)

SPECS
In April 2020, India’s Ministry of Electronics and Information Technology issued Gazette Notification No. CG-DL-E-01042020-218992, which introduced the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). This initiative has aimed to strengthen the country’s electronic manufacturing ecosystem. The program plans to offer a 25% capital expenditure incentive for approved items on a designated list of electronic products. This aims to enhance the downstream value chain of electronics, covering electronic components, semiconductor/display manufacturing units, ATMP units, dedicated sub-assemblies, and related capital goods.

The scheme is open to any company or entity that has been registered in India. The program guidelines are currently available in 10 languages, including Traditional Chinese. In July 2023, a revised notice was issued to further clarify application requirements and submission deadlines. (MeitY, 2020)

EMC 2.0
In April 2020, India’s Ministry of Electronics and Information Technology (MeitY) launched the Modified Electronics Manufacturing Clusters Scheme, EMC 2.0. The primary goal of the scheme has been to address challenges various industries face in establishing high-quality infrastructure by developing public facilities that fill in gaps in India’s electronics manufacturing sector. This has aimed to attract major global electronics manufacturers to invest in or set up operations in India by providing ready-to-use factory spaces and plug-and-play infrastructure. In addition, India hopes to strengthen connectivity between domestic and international markets by enhancing supply chain resilience while integrating suppliers, shortening time-to-market, and reducing logistics costs.

EMC 2.0 is open to foreign companies and entities registered in India. Application materials are available in multiple languages, and comprehensive guidelines are provided to assist with the application process. In April 2023, MeitY created more opportunities for foreign electronic component manufacturers to establish production facilities in India by issuing an annex to the scheme that extended its original application deadline from 2023 to 2024. (MeitY, 2020)

Production Linked Incentive Schemes in India (PLI)
In March 2020, India’s Finance Minister Nirmala Sitharaman allocated 14 industrial sectors a sum of 1.97 trillion rupees (over US$26 billion) to execute the Production Linked Incentive Schemes in India (PLI). This initiative aims to make Indian companies and manufacturers globally competitive by attracting investment in key industries and cutting-edge technologies while ensuring production efficiency and facilitating economies of scale in manufacturing.

The initial phase of funding in March 2020 targeted three sectors: mobile manufacturing and specified electronic components, critical starting materials, drug intermediates and active pharmaceutical ingredients, and medical device manufacturing. In November of the same year, the scheme expanded to include additional sectors: automobiles and auto components, pharmaceuticals, specialty steel, telecom and networking products, electronic and technology products, white goods (specifically air conditioners and LED products), food processing, textiles (focused on man-made fiber and technical textiles), high-efficiency solar photovoltaic (PV) modules, and advanced chemistry cells (ACC). In September 2021, funding was also extended to the drone and drone components sector. (Invest India) (MOCI, 2024)

In August 2023, India introduced the Production Linked Incentive Scheme - PLI 2.0 for IT Hardware, which the country specifically formulated to support the development of IT hardware infrastructure. The scheme aims to expand and strengthen manufacturing ecosystems by encouraging the localization of components and subassemblies while allowing a longer timeframe for the development of domestic supply chains. Subsidized market segments under this scheme include: laptops, tablets, All-In-One PCs, servers, and ultra-small form factor (USFF) workstations. The program also encompasses related industries such as semiconductor design, integrated circuit manufacturing, and packaging. The scheme is expected to offer subsidies and incentives over a six-year period to approved applicants in IT and semiconductor-related sectors. (MeitY, 2023)

NPE 2019
In February 2019, India’s Ministry of Electronics and Information Technology (MeitY) released the National Policy on Electronics 2019 (NPE 2019), which replaced its previous National Policy on Electronics 2012. This policy aims to transform India into a global hub for Electronic System Design and Manufacturing (ESDM) by achieving a total revenue of US$400 billion from domestically manufactured and exported ESDM products by 2025. In addition to increasing the revenue of India’s domestic electronic industry, the policy also seeks to build a globally competitive ESDM ecosystem while promoting the manufacture and export of the country’s entire electronics value chain.

The policy also aims to provide the necessary momentum and support for the production of critical electronic components. The policy offers additional incentive measures for projects that involve large amounts of advanced technology and capital, such as semiconductor equipment and display manufacturing. To achieve these objectives while driving comprehensive growth in India’s domestic electronics and semiconductor industries, the policy places strong emphasis on encouraging private-sector innovation and academic development.
(MeitY, 2019) (Shankar IAS Parliament, 2019) (Drishti, 2019)

 
Collaboration: Taiwan and India

MOFA
At the invitation of the India Taipei Association (ITA), Deputy Minister of Foreign Affairs Tien Chung-kwang attended, via video conference, the groundbreaking ceremonies for three semiconductor plants in Gujarat and Assam in March 2024. Among these projects was a joint venture between Taiwan’s PSMC and India’s Tata Electronics to construct the country’s first wafer fabrication plant in Dholera, Gujarat.

During his remarks, Indian Prime Minister Narendra Modi emphasized that the semiconductor industry is a key area of strategic cooperation between India and Taiwan, and he specifically noted the virtual presence of a “Taiwanese leader” at the ceremony.

Before attending the groundbreaking ceremony via video conference, Deputy Minister Tien stated that at this critical moment of global supply chain restructuring and de-risking, this collaboration will help India achieve its goal of semiconductor self-sufficiency while setting an example for other Taiwanese semiconductor companies looking to invest in India.

ITA Director Manharsinh Yadav emphasized that cooperation between Taiwan and India is of vital importance and expressed his pleasure in seeing both countries working together on this forward-looking endeavor. (MOFA, 2024)

SEMI Taiwan
In June 2024, to promote exchange and cooperation between the semiconductor industries of Taiwan and India, the India Taipei Association (ITA), the Ministry of Electronics and Information Technology (MeitY), the India Semiconductor Mission (ISM), and SEMI jointly held the India-Taiwan Semiconductor Forum. Besides holding discussions on the current state and future prospects of India’s semiconductor industry, the forum also featured in-depth exchanges on exploring opportunities for international collaboration. During the forum, the Indian government announced its key strategies to transform the country into the next international semiconductor powerhouse. Officials from MeitY and agencies responsible for implementing the India Semiconductor Mission were specially invited to engage with Taiwanese semiconductor and electronics industry representatives. These groups further strengthened bilateral industrial cooperation between India and Taiwan by sharing insights on market prospects, development opportunities, and the current landscape of the semiconductor industry.

The India–Taiwan Semiconductor Forum has been widely regarded as the beginning of a new chapter in cooperation and development between the two countries' semiconductor industries. Through international cooperation, India is expected to become a key player in the global semiconductor sector. Working with Taiwan, India will shape a new landscape for the global semiconductor market by injecting new momentum and vitality into the sector.
(EETimes Taiwan, 2024)

National Cheng Kung University (NCKU)
In October 2024, NCKU AISSM aimed to leverage the complementary technological strengths of Taiwan and India by signing cooperation agreements with IIT Madras and IIT Gandhinagar. These agreements are expected to strengthen the collaborative impact of talent cultivation in semiconductors through faculty research exchanges, student exchange programs to Taiwan, and short-term summer courses.

NCKU AISSM Director Dr. Yan-Kuin Su stated that institutions around the world recognize the research achievements and student quality of the Indian Institutes of Technology. NCKU benefits from Taiwan’s complete semiconductor supply chain. While TSMC leads global semiconductor manufacturing and drives upstream, midstream, and downstream industries, NCKU AISSM provides the corresponding support in technological development.

Director Su also mentioned that companies such as Foxconn, PSMC, and Delta Electronics have already established operations in India and are in urgent need of semiconductor talent. Furthermore, Director Su suggested that Taiwan’s private sector could assist Indian universities in training the necessary semiconductor talent. NCKU’s complete semiconductor process equipment is available for hands-on training. Partner schools are welcome to send students for short-term training programs lasting from three to six months.
(NCKU, 2024) (CNA, 2024)

National Chung Cheng University (CCU)
In November 2024, CCU and IIT Gandhinagar held a signing ceremony for an inter-university cooperation memorandum of understanding and an agreement on student exchange. These both aim at strengthening international academic collaboration while promoting cross-border research. At the ceremony, the two universities also engaged in discussions on specific avenues of cooperation in science and engineering. IIT Gandhinagar Director Rajat Moona emphasized that there are numerous opportunities for collaboration between the two institutions, particularly in semiconductors, artificial intelligence, and IC manufacturing. Therefore, Director Moona noted the potential for sharing experiences in industry-academia-government cooperation. IIT Gandhinagar plans to enhance the international mobility of their students by sending them to CCU for exchange programs, internships, and summer camps. The signing of these agreements symbolizes strong commitment to international education and research cooperation, and brings more impact and development between the academy society of two countries. (CCU, 2024)

International Collaboration

Quad
In May 2022, leaders from India, Australia, the US, and Japan held a meeting in Tokyo to discuss strengthening cooperation in key technology such as semiconductors, quantum computing, telecommunications, and space. They issued a joint statement expressing the desire to leverage their “complementary strengths” to create a “diverse and competitive” chip market while identifying vulnerabilities in the semiconductor supply chain.

Apart from semiconductors, the 2022 Quad meeting also covered topics such as space technology and the promotion of academic collaboration. According to analysts, although China was not explicitly mentioned during the talks, discussions on Indo-Pacific geopolitical issues suggest the intention to counter China's regional expansion. As of now, the 2025 Quad leaders' summit hasn’t been held. Whether Indian and US officials will once again engage in discussions on semiconductors is uncertain. (Science|Business, 2022)

United States

In January 2023, the US and India launched the Initiative on Critical and Emerging Technology (iCET), which established a framework for cooperation in cutting-edge fields such as artificial intelligence, quantum technologies, and advanced communications. In March, India officially joined the US-led Chip 4 Alliance when the two countries then signed a Memorandum of Understanding on Semiconductor Supply Chain and Innovation Partnership. (Storm Media, 2024) (MOCI, 2023)

In September 2024 during talks in Wilmington, Delaware, former US President Joe Biden and Indian Prime Minister Narendra Modi announced that the two countries planned to jointly establish a national security semiconductor facility named Shakti in 2025. The facility will produce chips for military equipment and next-generation telecommunications. Indian defense company Bharat Semiconductors, Indian image sensor startup 3rdiTech, and the US Space Force will form strategic partnerships to support the project. According to the agreement, the fab will focus on manufacturing infrared, gallium nitride (GaN), and silicon carbide (SiC) semiconductors. This marks the first semiconductor manufacturing partnership between India and the US, and the first time the US military has agreed to form a high-value technology alliance with India. Both leaders praised the semiconductor project as a “watershed moment.” (MOCI, 2024)

According to the US State Department, it will collaborate with semiconductor delegates from India’s Ministry of Electronics and Information Technology to explore opportunities for developing a diversified global semiconductor ecosystem under the International Technology Security and Innovation (ITSI) Fund established by the 2022 CHIPS Act. A comprehensive assessment will first be conducted on India’s existing semiconductor ecosystem, regulatory framework, labor force, and infrastructure needs. This evaluation will serve as the foundation for potential joint initiatives to further strengthen and develop this critical industry in the future. This collaboration aims to bring mutual benefits to both nations and highlights India’s potential in developing its domestic semiconductor industry. (USSD, 2024)

Following the US presidential election and Donald Trump’s return to office, he has maintained technology cooperation with India even though President Trump has expressed doubts regarding the semiconductor policies of the Biden administration. In February 2025, Indian Prime Minister Narendra Modi and President Donald Trump (who took office in January 2025) reached a consensus on the TRUST (Transforming Relationship Utilizing Strategic Technology) initiative. Under this new framework, the two nations will continue to cooperate on building strong supply chains for critical minerals, advanced materials, and pharmaceuticals.

The TRUST initiative, which replaced the iCET initiative that both countries proposed in 2023, will continue to develop bilateral supply chains in areas such as defense, artificial intelligence, semiconductors, pharmaceuticals, and biotechnology. TRUST retains INDUS-X, an initiative from iCET. Additionally, the US and India jointly announced the launch of the INDUS innovation program, which aims to ensure the continued leadership of both countries in innovation by fostering industrial and academic collaboration while promoting investment in space, energy, and other emerging technologies. (Business Standard, 2025) (Hindustan Times, 2025)

Singapore
In September 2024, during Indian Prime Minister Narendra Modi’s visit to Singapore, both countries signed a cooperation agreement aimed at enhancing Singapore’s role within India’s semiconductor supply chain. According to Singapore’s Ministry of Trade & Industry (MTI), the two countries will leverage their complementary strengths in their respective semiconductor ecosystems to jointly strengthen supply chain resilience. The cooperation is expected to include government-led policy exchanges focused on ecosystem development, supply chain resilience, and human resource development.

According to India’s Ministry of External Affairs (MEA), Prime Minister Modi’s visit also resulted in the signing of three additional agreements, covering cooperation in digital technology, education and skills development, as well as health and medical sectors. (UAnalyze, 2024)

In August 2024, Singapore and India held the Second India-Singapore Ministerial Roundtable (ISMR) to address challenges due to geopolitical shifts and overall economic development and explore opportunities for collaboration in emerging industries. This roundtable built upon and deepened the discussions from the first ISMR, which was held in India in September 2022, where the two sides focused on cooperation in five key areas: the green economy, digitalization, food security, skills development, and healthcare. The second roundtable further expanded the scope of cooperation to include emerging sectors such as advanced manufacturing, the semiconductor industry, and aviation and maritime connectivity. (TRO Singapore, 2024) (MFA, 2024)

India's Policy on Semiconductor & Chip

Keywords: #India  #Semiconductor  #Chip

Reference/Sources:

India's Sources

• Hindustan Times (2025.03) TRUST replaces iCET: New brand, old spirit on tech partnership
• Ministry of Commerce and Industry (2024.07) 755 applications approved across 14 sectors, investment of Rs. 1.23 lakh crore attracted under PLI Scheme till March 2024
• MeitY (2023.05) Production Linked Incentive Scheme - PLI 2.0 for IT Hardware
• Ministry of Commerce and Industry (2023.03) MoU on semiconductor Supply Chain and Innovation Partnership between India and US signed following the Commercial Dialogue 2023
• MeitY (2022.12) India Semiconductor Mission
• MeitY (2022.09) Modified Programme for Semiconductors and Display Fab Ecosystem
• MeitY (2020.04) Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
• MeitY (2020.04) Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme
• MeitY (2019.02) National Policy on Electronics 2019
• Shankar IAS Parliament (2019.02) National Policy on Electronics 2019
• Drishti (2019.02) National Policy on Electronics 2019
• Invest India Production Linked Incentive (PLI) Schemes in India

Foreign Sources

• Business Standard (2025.02) India-US TRUST, IMEC to drive economic, infra cooperation: Experts
• U.S. Department of State (2024.09) New Partnership with India to Explore Semiconductor Supply Chain Opportunities
• Ministry of Foreign Affairs, Singapore (2024.08) Transcript of Minister's Doorstop Interview Following the 2nd India-Singapore Ministerial Roundtable at Shangri-La Singapore, 26 August 2024
• Science|Business (2022.05) US, India, Japan and Australia to expand science and tech collaboration

Domestic Sources