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DigiTimes
India trims chip subsidies but widens their reach as it courts electronics supply chain away from China
On July 15, India approved two significant incentive packages aimed at reshaping its semiconductor subsidy approach. The government is reducing project-specific chip subsidies while expanding their reach across the broader electronics value chain. This strategy is intended to attract foreign investment and encourage companies to relocate their supply chains away from China. By adjusting its focus on a wider range of manufacturing incentives, India is positioning itself to become a more competitive player in the global electronics market.
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Published 16 Jul 2026, 06:20 UTC1 min read
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Summary
TL;DR
- India approved new semiconductor subsidy packages on July 15
- Incentives now cover a broader range of the electronics value chain
- Project-specific chip subsidies have been reduced
- New smartphone manufacturing scheme introduced
- Strategy aims to shift supply chains from China
Interesting facts
- The revision reflects India's ongoing efforts to boost its electronics sector.
- MediaTek and other companies may face increased product prices due to supply constraints.
- India's changes come amid global trends of diversifying supply chains.