Indian Semiconductor Industry to Get a Boost with PM Modi’s Investment of Rs 1,200 Crore

Union Minister Rajeev Chandrasekhar has announced that 27 domestic start-ups have been selected to benefit from a scheme aimed at investing in Indian semiconductor design start-ups, which has been allocated a budget of Rs 1,200 crore by the Prime Minister. He announced it a day before the 3rd SemiconIndia Roadshow.

Under the design-linked incentive scheme of the Ministry of Electronics and Information Technology (MeitY), funding approval has been granted to 23 semiconductor start-ups. The names of four additional start-ups are expected to be announced at the roadshow to be held tomorrow (May 12) at IIT-Delhi.

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In a bid to support the growth of the semiconductor design industry in India, MeitY has organized a series of roadshows across the country. Two such roadshows have already taken place in Gandhinagar and Bengaluru.

During a technology policy conference in Delhi on May 11th, Chandrasekhar announced that Jim Keller, a former microprocessor engineer at Tesla and Apple, is launching two semiconductor start-ups in Bengaluru, indicating that India’s endeavors to establish itself as a significant player in the international high-tech supply chain are paying off.

Furthermore, the minister emphasized that the government is committed to supporting deeptech start-ups in fields such as artificial intelligence and semiconductors.

According to him, a significant portion of the digital economy’s revenue is being allocated to deeptech. The success of Indian startups has been largely due to the country’s substantial consumer base, he acknowledged.

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However, he emphasized the need for India to focus on developing its intellectual property to move forward. To reduce dependence on imports, India has introduced a production-linked incentive (PLI) program worth Rs. 76,000 crore for semiconductor and display manufacturing facilities. Under this initiative, the government is willing to contribute 50% of the project cost for all types of factories. The aim is to attract global corporations like Intel to establish manufacturing plants in India.

When questioned about the regulation of AI in India, Chandrasekhar stated that it is still premature to regulate the technology. He mentioned that the upcoming Digital India Act, which will replace the Information Technology Act, will contain protective measures to prevent any harm to users caused by AI products. As a result, there is no need to establish a specialized regulatory framework for AI.