The government of Delhi has initiated the formulation of a semiconductor policy aimed at establishing the Capital as a center for chip design, research, and advanced packaging, as highlighted in an official announcement on Sunday.
This proposed policy is built upon five key components: the development of semiconductor design and intellectual property, research and innovation, activities that facilitate manufacturing such as Assembly, Testing, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Testing (OSAT), the growth of supporting industries, talent development and skill enhancement, and the fortification of the startup and industrial ecosystem.
Chief Minister Rekha Gupta emphasized that the policy is designed to create high-quality job opportunities in fields like chip design, semiconductor research, and advanced packaging. It also seeks to encourage skill development through focused training programs, internships, and partnerships between industry and academia.
The policy is anticipated to concentrate on attracting less capital-intensive segments of the semiconductor ecosystem, steering away from the manufacturing aspect, which requires billions of dollars and is highly complex.
The government aims to draw in the semiconductor ecosystem through capital incentives, infrastructure improvements, and collaboration with national programs, particularly the India Semiconductor Mission.
The significance of this initiative lies in the fact that semiconductors are fundamental to microchips found in nearly all electronic devices, including phones, computers, and automobiles. With the rise of digitalization and automation, these chips have become integral to virtually every product in use today.
The global chip shortages triggered by the COVID-19 pandemic and the conflict in Ukraine have exposed vulnerabilities in supply chains for many products, highlighting the importance of these chips for economic and technological stability.
Currently, production is primarily dominated by Taiwan, South Korea, Japan, China, and the United States, with Taiwan accounting for over 60% of global semiconductor output and 90% of the most advanced chips, creating potential risks if supply chains are disrupted.
In response to these challenges, numerous countries, including India, are investing in efforts to develop diverse and domestic semiconductor ecosystems.
In December 2021, the Central government unveiled the India Semiconductor Mission (ISM) with a budget of approximately $10 billion, focusing mainly on subsidizing the establishment of semiconductor fabrication as well as assembly and testing facilities. This initiative aims to concentrate on the necessary physical infrastructure for chip manufacturing. In February, Union Finance Minister Nirmala Sitharaman introduced ISM 2.0, which focuses on producing equipment and materials, designing comprehensive Indian intellectual property, and strengthening supply chains. Various states have also introduced incentives to attract this advanced sector.
Currently, India has ten approved semiconductor projects spread across six states.
Devansh Mittal serves as a Correspondent for The Indian Express, based in the New Delhi City bureau. His reporting primarily centers on urban policy, civic governance, and infrastructure within the National Capital Region, increasingly focusing on housing, land policy, transport, and the implications of the disruption economy on society.
In terms of his professional background, he studied Political Science at Ashoka University. His core reporting areas include policy and governance in one of the largest urban agglomerations globally, covering topics like housing and land policy, municipal governance, urban transport, and the relationship between infrastructure, regulations, and daily life in the city.
Among his recent notable work is an investigation into subvention-linked home loans, which revealed how homebuyers became entangled in under-construction projects through a “builder–bank” connection, often leaving them financially vulnerable when delivery timelines were not met. He also reported on the reasons behind the stagnation of Delhi’s land-pooling policy since 2007, identifying how fragmented land ownership, flaws in policy design, and mistrust among stakeholders have stalled this important urban reform. Additionally, he covered the collapse of an electric mobility startup and its implications for women drivers reliant on the platform for their livelihoods.
Devansh combines on-site reporting with the analysis of government data, court records, and academic research. He frequently reports from neighborhoods, government offices, and courtrooms to elucidate how decisions regarding housing, transport, and the disruption economy impact everyday life in the city.
For further engagement, he can be followed on X (Twitter) @devanshmittal_ or contacted via email at devansh.mittal@expressindia.com.
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