India's Manufacturing States Compete for Chip Investments

India's manufacturing states are competing to attract chip investments by offering incentives and worker training programs. Indian Prime Minister Narendra Modi has emphasized the importance of expanding the country's chip making industry. Traditional manufacturing states are seeking to capitalize on this push.

In a significant push to bolster India's semiconductor industry, traditional manufacturing states are implementing stronger incentives and worker training programs to attract chip investments. This strategic move aligns with the government's broader aim to develop a robust domestic semiconductor ecosystem.

Prime Minister Narendra Modi, at the fourth edition of the Semicon India conference, underscored the importance of expanding India's chip-making capabilities. He emphasized that the country's semiconductor journey is accelerating, with 10 projects already approved under the India Semiconductor Mission (ISM) and new reforms planned to establish India as a full-stack semiconductor nation [4].

To further boost these efforts, the government is working on the second phase of the ISM, which aims to double the sector's economic output by 2030. Traditional manufacturing states are capitalizing on this push by offering competitive incentives and worker training programs. For instance, the Odisha Semiconductor Fab and Fabless Innovation and Acceleration Programme (O-Chip) is collaborating with the ChipIN Centre to catalyze the fabless chip design ecosystem in the State of Odisha [1].

GlobalFoundries, a global semiconductor company, has also announced support for companies under the Design Linked Incentive (DLI) scheme. Through its India Foundry Connect program, GlobalFoundries will provide approved firms with access to process design kits (PDKs), multi-project wafer (MPW) fabrication, intellectual property (IP) resources, and engineering support. This initiative is expected to help Indian semiconductor companies accelerate the transition from design to manufacturing [1].

Additionally, the University at Albany has partnered with Ramaiah University of Applied Sciences in Bangalore to offer graduate certificates in semiconductor engineering. These certificates can be completed remotely, allowing students and professionals to access advanced semiconductor knowledge without leaving their home country. This collaboration is part of a broader effort to build a global semiconductor workforce pipeline [2].

Incentives and training programs are not the only strategies being employed. The government is also actively seeking collaborations with international institutions. For example, the Centre for Development of Advanced Computing (C-DAC) has signed a memorandum of understanding with Rigetti Computing for co-development and fabrication access, and letters of intent for cooperation with QuantWare (Netherlands) and QuantrolOx (Finland) for superconducting chip design and fabrication [1].

These developments indicate a concerted effort by the Indian government and traditional manufacturing states to attract chip investments and develop a competitive semiconductor industry. By offering robust incentives, training programs, and strategic collaborations, these states aim to capitalize on the growing global demand for semiconductors and position India as a key player in the global chip market.

References:
[1] https://www.business-standard.com/amp/technology/tech-news/semicon-india-2025-globalfoundries-to-support-companies-under-dli-scheme-125090401518_1.html?isa=yes
[2] https://www.albany.edu/news-center/news/2025-cnse-brings-semiconductor-workforce-programs-india
[3] https://asia.nikkei.com/business/tech/semiconductors/india-s-manufacturing-states-fight-to-attract-chip-investments
[4] https://www.business-standard.com/technology/tech-news/pm-modi-india-semiconductor-mission-global-chip-market-125090200756_1.html