madhya pradesh unveils semiconductor policy to attract global tech giants
Madhya Pradesh, Thursday, 6 February 2025.
Madhya Pradesh has launched a groundbreaking semiconductor policy to boost chip production and attract global investments. The state government approved a raft of incentives designed to draw international tech players like NVIDIA, ASML, and TSMC. With subsidies on capital and interest, along with land at concessional rates and subsidized electricity, the policy aims to create a thriving semiconductor ecosystem. Projects over ₹400 crore can expect customized incentive packages that may include infrastructure support and tax rebates. The policy fosters public-private partnerships, encourages foreign direct investment, and urges collaboration with academia. A simplified regulatory framework is in place to expedite project approvals. Financial aids for R&D come through special funds, aiming to make Madhya Pradesh a key player in the global semiconductor market. This initiative signals a significant shift as India aims to establish itself as a semiconductor hub.
Financial incentives and support structure
The state’s new policy introduces substantial financial benefits for semiconductor manufacturers. Companies can receive capital investment subsidies of up to 25% of their investment or 50% of the central government subsidy, with a ₹150 crore cap for non-government projects [1][2]. The policy offers a 6% interest subsidy for five years, capped at ₹10 crore [1]. Operational costs are addressed through a power tariff subsidy of ₹2 per unit for the initial decade [2].
Strategic timing amid global supply chain shifts
The policy launch aligns with broader economic shifts as global tech companies seek to diversify their manufacturing bases. With the United States pushing to reduce dependence on Chinese manufacturing [4], India’s semiconductor initiatives gain strategic importance. The policy’s timing could attract companies looking to establish new production facilities, particularly as India positions itself as an alternative manufacturing hub [3].
Innovation and research focus
The policy emphasizes technological advancement through research and development initiatives. Financial aid will be provided through special funds and programs to support semiconductor research [1][2]. The state government is promoting collaboration between academic institutions and the private sector, creating an ecosystem that combines theoretical knowledge with practical industry experience [2].
Bronnen
- manufacturing.economictimes.indiatimes.com
- www.communicationstoday.co.in
- uanalyze.com.tw
- www.reeracoen.sg