India's Technology Minister Ashwini Vaishnaw said Thursday that investors have promised up to $12 billion for the country's chip push, unveiling the figure at a major industry gathering in New Delhi. He did not provide company names, and noted that the money is slated to roll out over the coming two to three years.
The wave of interest follows India's July launch of a $13.4 billion semiconductor fund that builds on an earlier $10 billion subsidy effort. That earlier program helped companies such as the Tata Group and Micron Technology Inc. move ahead with fabrication and assembly plants in India. Some projects cleared under the prior policy, including Micron and the Murugappa Group's chip unit, have already reached commercial production. As Vaishnaw put it, "So far whatever production is there is already booked and capacity, which is getting created, is already booked."
Earlier Thursday, Prime Minister Narendra Modi made a direct pitch to global investors, highlighting India's deep bench of engineering graduates and pro-semiconductor policies. The conference also drew pledges running into the billions from US players Applied Materials Inc. and Lam Research Corp. Meanwhile, Tata Group's electronics and chip arm signed five accords across the supply chain. One ties up with Nexperia BV for semiconductor wafer manufacturing, assembly, and testing tied to Tata's fabrication plant in western Gujarat and its assembly facility in Assam.
Another links Tata Electronics with Fujifilm Corp. to produce critical raw materials locally and build a supply network around the Dholera unit in Gujarat. Tata Electronics CEO Randhir Thakur said, "The question of whether we can make chips in India has changed to how fast and how deep can we build the semiconductor ecosystem in Inia. The answer is: deeper than anyone would have thought and sooner than anyone could have predicted."
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Booked-out production and new billion-dollar commitments suggest India's chip buildout is meeting real demand, not just subsidy math. For investors watching India-connected chip makers, equipment suppliers, and materials firms, the near-term story is capacity coming online and supply chains localizing in Gujarat and Assam. The longer-term plot is whether those plants can hit yield, scale, and delivery targets fast enough to lock in global orders.
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