Indian media reported that on September 11 local time, Indian Prime Minister Narendra Modi appealed to industry experts at the Semicon India 2024 Summit to invest in India's semiconductor industry – "When there is a global chip shortage, the world can bet on India."

Modi told top executives of major global chip companies that India would do everything possible to become a chip manufacturing powerhouse. The government has formulated policies to provide 50% financial support for facilities related to semiconductor manufacturing, such as front-end fabs, display fabs, semiconductor packaging, and supply chains.

Due to tensions between China and the United States, the industry has experienced turbulence due to the rivalry between the two countries, providing opportunities for countries like India that aim to significantly increase their domestic semiconductor supply capabilities.

Modi stated that India's goal is to "increase the value of the electronics industry to $500 billion by 2030 and create 6 million jobs in the sector." "100% of electronics manufacturing will take place in India, and India will also produce semiconductor chips and finished products."

He emphasized that this is an excellent time to invest in India's semiconductor industry and promised that India has all the conditions for success.

This exhibition, organized by SEMI, the International Semiconductor Equipment and Materials Association, was held in India for the first time and attracted over 250 domestic and foreign companies.

India has long relied on imports to meet its demand for semiconductor devices, primarily due to a lack of semiconductor manufacturing facilities, weak hydropower infrastructure, and the brain drain of top IT talent, leading to increased semiconductor investment subsidies in India.

Globally, India's semiconductor investment subsidies can be considered "generous" – the Indian government has introduced a series of measures to develop the semiconductor industry since 2007. In December 2021, the Indian government also launched the "India Semiconductor Mission" with an initial allocation of INR 760 billion (approximately RMB 65.54 billion), aiming to promote the development of the country's semiconductor and display manufacturing ecosystems. In the 2024 Interim Union Budget, India has increased the interim allocation for the Semiconductor Mission to INR 69.03 billion (approximately RMB 5.94 billion).

However, these efforts have yet to yield significant results. In 2021, only 9% of the semiconductor components used in India were sourced locally. The last time Indian chips "broke out" was due to the "cow dung chip" in 2020.