Delhi government drafts semiconductor policy to become hub for chip design and innovation

The Delhi government is reportedly drafting a semiconductor policy aimed at positioning the capital as a hub for semiconductor design, research and job creation, aligned with India’s broader push towards technological self-reliance.

The chief minister of Delhi said semiconductors have emerged as a critical pillar of the global economy, powering everything from consumer electronics and automobiles to defence systems and artificial intelligence, and enabling manufacturing units, hospitals, transport systems and satellites.

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.

The government plans to offer a mix of financial and non-financial incentives, including capital subsidies, infrastructure support and measures to reduce operational costs. The policy will also align with national initiatives such as the India Semiconductor Mission to ensure synergy with the central government’s strategy and boost investor confidence.