Budget 2025 Expectations: Semiconductor Industry Looks for Support to Boost Domestic Manufacturing, Incentives, and Innovation Investment

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As India’s Union Budget 2025 approaches, the semiconductor manufacturing sector is seeking measures to strengthen domestic production capabilities. Experts highlight the need for incentives to attract global semiconductor producers and support the growth of the local tech ecosystem.

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Additionally, industry representatives stress the importance of establishing semiconductor training programs and design labs in collaboration with academic institutions to build a skilled workforce and reduce reliance on imports.

Read the Union budget 2025 expectations in detail:

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Shetal Mehta, Co-Founder, Suchi Semicon

As the Budget 2025 approaches, the semiconductor industry anticipates policies to address critical gaps in India’s semiconductor ecosystem. While the allocation of ₹10,000 crore under the Production Linked Incentive (PLI) scheme has provided significant momentum, the focus now must shift towards strengthening domestic semiconductor manufacturing capabilities and driving innovation in Outsourced Semiconductor Assembly and Testing (OSAT).

With global semiconductor revenue projected to reach $676 billion by 2025, India has an opportunity to strengthen its position in this sector. However, challenges remain in ensuring a reliable supply chain and achieving self-reliance in chip manufacturing. Budget 2025 can boost semiconductor manufacturing in India by offering incentives to attract global producers, reducing import dependency, and strengthening the domestic tech ecosystem. This would also drive job creation and economic growth.

Investments in creating semiconductor education programs and design labs in collaboration with academic institutions are critical to building a skilled workforce. Tax benefits for R&D expenditure and subsidies for accessing advanced tools can further support innovation in the sector.

With the implementation of these measures, India can strengthen its role in the global semiconductor market, emerging as a prominent manufacturing hub and a key player in semiconductor innovation and growth.

Ashok Rajpal, Managing Director, Ambrane India

As we approach Union Budget 2025, we are optimistic about continued government focus on the electronics and semiconductor sectors. Previous budgets have shown a strong commitment to semiconductor development through increased funding for the Ministry of Electronics and Information Technology (MeitY), highlighting India’s push for self-reliance and global competitiveness.

The mobile accessory manufacturing sector, heavily reliant on semiconductors, stands to benefit greatly from enhanced domestic production. By reducing dependency on imports, a robust semiconductor ecosystem can streamline supply chains, lower costs, and foster innovation in products like power banks, chargers, and cables.

We anticipate that the upcoming budget will strengthen initiatives like the Production Linked Incentive (PLI) scheme and skill development programs. These steps will accelerate India’s technological evolution, generate employment, and boost exports, propelling the country closer to its goal of becoming a global electronics manufacturing hub. India is poised for an electronics revolution, and the government’s efforts to equip the workforce with advanced skills and promote domestic production are critical. At Ambrane, we are ready to align with India’s vision, leveraging these developments to innovate, grow, and contribute to the nation’s self-reliant future.

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Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

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