NEW DELHI, June 22 -- India is stepping up its bid to build a domestic semiconductor supply chain, with the Centre planning to disburse Rs.7,100 crore in incentives this fiscal year under a fresh set of project targets spanning chip fabrication, manufacturing and design, according to two government officials aware of the development. The government expects the funding to attract about Rs.15,000 crore in fresh investment and generate around 4,700 jobs. Under the fiscal year 2027 (FY27) plan, the department of expenditure (DoE) has tasked the ministry of electronics and information technology (MeitY) with supporting one semiconductor fabrication (fab) unit, nine semiconductor manufacturing facilities and 30 semiconductor design companies under the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India, the officials said, requesting anonymity. The semiconductor fab unit will receive Rs.2,000 crore in fiscal support and is expected to attract Rs.4,000 crore in investments and generate employment for 1,500 people. In addition, the nine units under the scheme for compound semiconductors, silicon photonics, sensors, discrete semiconductor fabs and semiconductor assembly, testing, marking and packaging (ATMP)/outsourced semiconductor assembly and test (Osat) facilities will receive Rs.5,000 crore in fiscal support and are expected to attract around Rs.11,000 crore in investments, generating employment for about 3,000 people. Separately, under the Design Linked Incentive (DLI) scheme, MeitY will support 30 semiconductor design companies with Rs.100 crore to develop 10 semiconductor intellectual property (IP) cores and employ 200 design professionals. "The DoE has allocated Rs.7,100 crore for incentive disbursal in FY27 under the programme, with the clear objective of strengthening domestic semiconductor manufacturing and design capabilities," said one of government officials cited earlier. Targeted incentive disbursal in the previous fiscal was about Rs.4,000 crore, with actual disbursal figures yet to be released. Queries emailed on 16 June to the ministries of finance and electronics and information technology remained unanswered till press time. India launched a Rs.76,000 crore semiconductor mission in December 2021 to develop a domestic semiconductor and display manufacturing ecosystem and reduce dependence on imports in critical technologies. The dozen projects approved under the India Semiconductor Mission include Tata Electronics' semiconductor fabrication facility at Dholera in Gujarat, being set up in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corp. (PSMC). Other approved projects include Micron Technology's assembly, testing, marking and packaging (ATMP) facility and CG Semi's outsourced Osat facility at Sanand, as well as Tata Electronics' assembly and test facility at Jagiroad in Assam. In May this year, the Union cabinet approved two additional semiconductor projects in Gujarat, including an integrated compound semiconductor fabrication and ATMP facility by Crystal Matrix Ltd and an Osat facility by Suchi Semicon Pvt. Ltd. Industry experts said the government's approach reflects a push to build capabilities across the semiconductor value chain rather than focus solely on manufacturing. Ajai Chowdhry, founder of HCL, said the direction looks promising. "It is critical for India to build domestic semiconductor manufacturing capacity. I think the government is largely focused on displays and is also looking at another large fab project. They would like to attract a strong global brand and establish credibility in semiconductor manufacturing," Chowdhry said. "The good news is that they are looking at supporting 30 design companies. That is a very positive initiative because, in my view, India's strength lies in chip design. We have a large pool of VLSI talent, and if there is a strong focus on design, it could be a very effective strategy," he added. Queries sent on 20 June to Micron Technology and HCL-Foxconn remained unanswered. A Tata Electronics spokesperson declined to comment, saying that the company does not comment on policy matters....