Strengthening India's position in global electronics manufacturing
India is strengthening its position as a global manufacturing and technology hub through targeted policy initiatives that promote innovation, domestic value addition and supply chain resilience. Semicon India 2.0 and the Mobile Phone Manufacturing Scheme (MPMS) represent two key programmes designed to accelerate investments across the semiconductor and electronics value chains.
With a combined outlay of INR 1,90,000 crore, these initiatives seek to expand manufacturing capabilities, encourage research and development, strengthen domestic supply chains and position India as a globally competitive destination for advanced electronics manufacturing. Together, they create opportunities for organisations across semiconductor manufacturing, mobile device production, advanced packaging, electronics components, materials, equipment and supporting technologies.
For organisations evaluating investments in India's electronics manufacturing sector, understanding the strategic priorities, incentive structures and implementation requirements under both programmes will be critical to maximising long-term value.
Shaping India’s electronics growth
Tune in to explore how MPMS and SemiCon 2.0 could drive investment, localisation and value creation in India.
Driving India's manufacturing transformation
Semicon India 2.0 and MPMS reinforce India's ambition to build resilient, globally competitive manufacturing capabilities while increasing domestic value addition and reducing supply chain dependencies.
Strategic pillars of Semicon 2.0
Design
Strengthen India's semiconductor design capabilities by promoting the development of chip designs, system designs and semiconductor intellectual property (IP).
Strengthening the ATMP/OSAT ecosystem
Support the development of advanced packaging technologies and strengthen India's ATMP/OSAT ecosystem through 25–35% capital expenditure support.
Machines and materials
Incentivise investments in precision manufacturing, semiconductor equipment, materials and related R&D to strengthen domestic manufacturing capabilities.
Research and development
Accelerate innovation through collaboration with leading research institutions while supporting the development of advanced semiconductor technologies.
Semiconductor fabrication
Support the establishment of silicon, compound semiconductor, discrete component and display fabrication facilities through 35–40% capital expenditure support.
Talent development
Develop a future-ready semiconductor workforce through specialised training in clean room operations, fab construction and other critical ecosystem capabilities.
MPMS strategic focus areas
Domestic value addition
Increase localisation of mobile phones, components and sub-assemblies to strengthen domestic manufacturing.
Supply chain resilience
Develop a robust domestic electronics ecosystem capable of supporting long-term manufacturing growth.
Brand creation
Encourage the development of globally competitive Indian mobile brands and advance technological self-reliance.
Innovation
Promote investment in product design, research and development, and innovation to create Indian intellectual property, patents and advanced technologies.
Key considerations for organisations
As organisations evaluate opportunities under Semicon India 2.0 and MPMS, a strategic approach to investment planning will be essential to maximise long-term value.
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Align investments with long-term business strategy
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Government incentives can strengthen project viability, but investment decisions should remain aligned with long-term commercial objectives, market demand and broader growth priorities.
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Assess value chain dependencies
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Both programmes place significant emphasis on domestic value addition. Organisations should assess opportunities to strengthen local sourcing, manufacturing capabilities and innovation to maximise programme benefits.
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Plan for long-term competitiveness
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As India's semiconductor and electronics ecosystem continues to evolve, organisations should build flexibility into investment strategies to support future expansion, technology adoption and deeper integration into domestic and global value chains.
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How Grant Thornton Bharat can help
Semicon India 2.0 and MPMS present significant opportunities for organisations investing across India's semiconductor and electronics manufacturing ecosystem. Successfully accessing these opportunities requires careful planning, robust documentation and alignment with programme requirements.
Grant Thornton Bharat supports organisations throughout the investment lifecycle, from assessing project feasibility and navigating policy frameworks to securing government incentives and supporting programme implementation.
Investment feasibility assessment
Assess the technical, commercial and financial viability of manufacturing investments to support informed decision-making and sustainable growth.
Programme application support
Support organisations with application preparation, documentation, stakeholder coordination and compliance to facilitate efficient access to government incentive programmes.
Government incentives and policy advisory
Help organisations identify, access and optimise government incentives, subsidies and policy support schemes aligned with their investment strategy.
Semicon 2.0: Building a resilient semiconductor ecosystem
Explore how Semicon 2.0 aims to strengthen India’s semiconductor ecosystem, drive value creation and create opportunities across the supply chain.
MPMS: Building a future-ready mobile manufacturing ecosystem
Explore how MPMS aims to strengthen domestic value addition, build resilient supply chains and support innovation in India’s mobile manufacturing ecosystem.
