Government Launches New Policy to Promote Domestic Semiconductor Startups

According to official sources, the policy introduces a dedicated ₹10,000 crore “Semicon Innovation Fund” to support early-stage and growth-stage startups in the sector. The government has also proposed setting up Semiconductor Research Centers (SRCs) in collaboration with premier institutions such as IITs and IISc to bridge the gap between academia and industry. Union Minister for IT and Electronics, Ashwini Vaishnaw, stated, “India must move from being a consumer to a creator in the semiconductor space. This policy ensures that startups are equipped with both capital and capability.”

Industry experts have welcomed the move, citing it as a necessary step toward self-reliance in critical technologies. Rajeev Khushu, Chairman of the India Electronics and Semiconductor Association (IESA), commented that the policy “creates a clear roadmap for innovation-driven chip design and indigenous IP development.” Analysts also note that the initiative complements the ‘Make in India’ and ‘Digital India’ missions by promoting local production and reducing dependence on global supply chains, which were severely disrupted during the COVID-19 pandemic.

Historically, India has lagged behind in semiconductor manufacturing due to high setup costs, limited fabrication facilities, and a shortage of skilled manpower. However, recent collaborations with global giants such as Micron Technology and Foxconn have revived optimism about India’s potential to become a competitive hub for semiconductor design and assembly. The new policy also includes measures to encourage foreign investment while ensuring that intellectual property rights remain with Indian entities.

With this policy, India takes a strategic step toward securing its technology future and reducing vulnerabilities in global electronics supply networks. If implemented effectively, the initiative could place India among the emerging semiconductor powerhouses by the end of the decade — boosting exports, creating high-tech jobs, and reinforcing its standing in the global innovation economy.