Delhi government drafts semiconductor policy to build design and innovation hub

The Delhi government is drafting a semiconductor policy aimed at positioning the capital as a hub for semiconductor design, research, and job creation. Officials said the Delhi Semiconductor Policy would provide a push aligned with India’s broader move towards technological self-reliance, according to Abhinav Rajput's Times of India report.

Chief Minister Rekha Gupta said semiconductors have emerged as a critical pillar in the global economy. They are used in everything from consumer electronics and cars to defence systems and artificial intelligence. These microprocessors power systems that keep societies running. They enable manufacturing units, hospitals, transport systems and satellites. “Delhi is working on a structured, forward-looking framework that promotes innovation, ease of doing business and a robust industry ecosystem,” she said.

A reliable supply of semiconductors is essential for economic stability and continuity across sectors. The push comes amid growing global recognition of the strategic importance of semiconductors.


Semiconductors are the backbone of modern electronics, powering computers, mobile devices, telecommunications, automobiles, defence systems and artificial intelligence.

Recent global disruptions, particularly during the Covid-19 pandemic, exposed vulnerabilities in semiconductor supply chains, with shortages impacting nearly 170 industries worldwide. Heavy dependence on a few countries such as Taiwan, South Korea, Japan, China and the US has heightened concerns around supply security and geopolitical risks.

Against this backdrop, countries across the world are ramping up domestic semiconductor capabilities. India, through initiatives like the India Semiconductor Mission, wants to emerge as a reliable partner in the global value chain.

Officials said the policy will complement these efforts by strengthening capabilities in design, innovation and talent, where the capital already has a competitive edge.

According to government officials, the policy will be built around five key pillars: semiconductor design and intellectual property development, research and innovation, manufacturing-enabling segments such as assembly, testing, marking and packaging (ATMP) and outsourced semiconductor assembly and testing (OSAT), talent development, and a strengthened startup ecosystem.

The move is expected to attract investments from fabless companies, startups, and global players looking to expand in India. Fabless companies design and market semiconductors, but do not manufacture them. That work is outsourced to semiconductor manufacturing specialists or companies.

The government plans to offer a mix of financial and non-financial incentives, including capital subsidies, infrastructure support and measures to reduce operational costs.

Officials said the policy will also align with national initiatives such as the India Semiconductor Mission to boost investor confidence and ensure synergy with the Centre’s strategy.

Gupta said the policy is likely to generate high-quality jobs in chip design, semiconductor research and advanced packaging. “We are focusing on skilling, industry-academia partnerships and targeted training programmes for a future-ready workforce,” she said, adding that the initiative would help attract and retain talent in the capital.

She also cited Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat, emphasising that semiconductors are central to technological sovereignty, national security and economic resilience. “States have a key role in building a coordinated and globally competitive ecosystem,” she said.

India is aiming to meet up to 70-75% of its domestic chip demand by 2029 and is targeting advanced manufacturing capabilities in the coming decade.

(With TOI inputs)