Delhi drafts semiconductor policy

Delhi’s government has started drafting a semiconductor policy aimed at pulling in investment and creating jobs in chip design and research. (economictimes.com) Chief Minister Rekha Gupta said on April 19 that the plan is meant to make the capital a hub for semiconductor design, advanced research and development, assembly, and allied activities. She said the policy will include financial and non-financial incentives to improve ease of doing business and support an industry-led ecosystem. (ndtvprofit.com) The push did not start this week. In Delhi’s 2026-27 budget on March 24, Gupta announced that the government would frame a semiconductor policy as part of a wider manufacturing plan that also included artificial intelligence centres and training for 12,000 micro, small and medium enterprises. (business-standard.com) Semiconductors are the tiny circuits that run phones, cars, power systems and data centres. Delhi is not pitching itself as a place for giant chip fabrication plants; Gupta’s statements have centered on design, research, advanced packaging and related services, which fit the capital’s office, university and startup base better than water- and power-intensive fabs. (thehindu.com) That approach lines up with India’s national semiconductor strategy. The India Semiconductor Mission says its Design Linked Incentive scheme offers financial support and design infrastructure for chip designers, while the broader mission backs semiconductor fabs and packaging plants with fiscal support. (ism.gov.in 1) (ism.gov.in 2) The central government has been expanding that design push. Digital India said this month that 23 chip-design projects have been sanctioned under the Design Linked Incentive scheme, and 72 companies have been given access to electronic design automation tools used to build chips. (digitalindia.gov.in) Delhi’s pitch is also about labor. Gupta said the policy is being framed to ramp up youth skilling, and government statements have tied the plan to jobs in chip design, semiconductor research and advanced packaging. (hindustantimes.com) A city-led chip policy cannot by itself solve India’s larger manufacturing gaps in land, utilities, equipment and supply chains. What Delhi can do faster is compete for engineers, design firms, research labs and back-end semiconductor work that can cluster around universities, startups and national programs already in place. (indiatimes.com) (pib.gov.in) The next test is whether the draft turns into a policy with clear incentives, timelines and training targets. For now, Delhi has formally entered India’s semiconductor race by betting on the parts of the chip business it is most likely to win. (outlookbusiness.com)