India Unveils Major Investment to Boost Semiconductor and Mobile Manufacturing

The Indian government has taken a significant stride towards bolstering its position in the global electronics manufacturing landscape by approving a massive investment of nearly Rs 1.9 lakh crore (approximately $22 billion). This comprehensive package, cleared by the Union Cabinet on Wednesday, July 15, 2026, comprises two pivotal programs: the Rs 1.27 lakh crore Semicon 2.0 initiative and the Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS). The overarching objective is to deepen India's semiconductor ecosystem, substantially scale up domestic mobile phone production, and enhance the country's appeal as a leading hub for electronics manufacturing and exports. The Semicon 2.0 program, building upon its first phase, is designed to accelerate capabilities across six critical areas: chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging and testing, research and development, and talent development. This strategic focus aims for self-reliance in indigenous chip production and is projected to attract investments of around Rs 4 lakh crore, leading to semiconductor production worth Rs 2 lakh crore. Concurrently, the Mobile Phone Manufacturing Scheme will provide production-linked incentives to manufacturers over five fiscal years, from 2026-27 to 2030-31. These incentives, ranging from 2.25% to 5% on eligible mobile phone sales, are further augmented by support for domestic component sourcing and R&D by Indian companies. This is expected to drive cumulative mobile phone production of approximately Rs 39 lakh crore and create around 60,000 direct jobs, moving India beyond mere assembly to encompass product design and intellectual property ownership.