India’s semiconductor mission is set to sharpen its focus on research and development (R&D). The Ministry of Electronics and Information Technology (MeitY) has indicated a broader push beyond manufacturing incentives.

A senior government official said the next phase of the programme will prioritise innovation, design capabilities and domestic ecosystem building, as the country looks to strengthen its position in the global chip supply chain.

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Policy Focus Expands Beyond Manufacturing

The government’s semiconductor initiative is initially centred on attracting fabrication units and assembly plants. It is now scaling up its investment in research. MeitY Additional Secretary highlighted that promoting R&D will be key to ensuring the sector’s long-term sustainability.

Officials said the aim is to support academic institutions, startups and industry players working on chip design, materials and next-generation technologies. The shift comes as global semiconductor strategies increasingly emphasise innovation alongside production capacity.

India has already approved multiple semiconductor and display manufacturing proposals under its incentive schemes. However, policymakers believe that without a strong research base, the country risks remaining dependent on external technologies.

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Building a Domestic Ecosystem for Global Competitiveness

The renewed focus on R&D is expected to complement existing schemes such as the Design Linked Incentive (DLI) programme. The government is looking to create a pipeline of skilled talent and intellectual property within the country.

Officials indicated that collaboration between academia, industry and government will be strengthened to accelerate innovation. This includes support for research labs, design centres and partnerships with global firms.

The move aligns with India’s broader ambition to become a key player in the global semiconductor value chain, amid ongoing geopolitical shifts and supply chain diversification efforts.