India is making a new attempt to attract chip companies to set up factories. New Delhi is reportedly preparing to revive an earlier $10bn industry incentive programme aimed at boosting local chip manufacturing capacity, according to people familiar with the matter.

India wants to emulate the United States in increasing its own chip production and reducing its dependence on Chinese chip imports (or not at all). India's semiconductor supply chain ambitions have been challenged by previous incentives that have failed to attract major international chip makers to set up production bases in the country.

The Indian government announced a $10 billion package in December 2021 to encourage chip production in India. According to recent reports, India's central government is in talks with at least four global semiconductor companies to set up such plants.

According to India, 99 percent of the phones used in the country are domestic, a stark contrast to 10 years ago, when 99 percent of every 100 phones were imported.

Today there are nearly 55,000 semiconductor design engineers working for various companies in India. As part of the semiconductor initiative, India has launched a design-led initiative, and it can be confidently said that in the next five to six years, India will become the great semiconductor design capital of the world, while also leveraging this capability to provide support for semiconductor manufacturing.