Over the past decade, the Government of India has invested Rs 2,859 crore in research and development (R&D) initiatives for semiconductors, according to information presented by Minister of State for Electronics and Information Technology Jitin Prasada in a written reply to the Lok Sabha. The investment underscores India’s commitment to developing its semiconductor ecosystem and fostering technological innovation.
India has emerged as a significant player in the global semiconductor design workforce. Reports such as the ‘SemiconIndia Future Skills Talent Committee Report’ highlight that, as of 2022, approximately 1.25 lakh semiconductor design engineers were employed in India. Additionally, the Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG) report published in May 2024 noted that Indian engineers constitute about 19% of the global semiconductor design workforce, with India hosting 7% of the world’s chip design facilities.
The Ministry of Electronics and Information Technology (MeitY) has played a pivotal role in driving R&D initiatives, supporting projects in areas such as nanotechnology, semiconductor materials, chip design, and semiconductor IP cores. Investments in semiconductor R&D have steadily grown, with notable allocations in recent years. In the financial year 2021-22 alone, Rs 502.04 crore was spent, the highest annual expenditure in this category over the past decade.
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The government has also prioritised skill development and capacity building in the semiconductor sector. Over Rs 298 crore has been spent on initiatives such as the Special Manpower Development Programme for Chips to System Design (SMDP-C2SD), the Indian Nanoelectronics User Programme (INUP), and the more recent Chips to Start-up (C2S) Programme. These programmes aim to address workforce gaps and foster a pipeline of skilled professionals.
The government’s focus extends beyond R&D and skill development. The ‘Modified Programme for Semiconductors and Display Fab Ecosystem’, with an outlay of Rs 76,000 crore, is designed to catalyse India’s semiconductor and display industries. Of this, 2.5% is allocated for R&D, skill development, and training. The Design Linked Incentive Scheme further supports the fabless chip design industry, earmarking Rs 1,000 crore for semiconductor R&D activities.
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