--- title: India commits $20 billion to semiconductors and... description: India's cabinet has approved $19.7 billion in manufacturing incentives split between semiconductors ($13.3 billion) and smartphones ($6.5 billion), aiming to... canonical: https://daily.dev/posts/india-commits-20-billion-to-semiconductors-and-smartphones-targeting-china-s-manufacturing-dominan-poywzz9yp twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: India commits $20 billion to semiconductors and smartphones, targeting China's manufacturing dominance | daily.dev og:description: India's cabinet has approved $19.7 billion in manufacturing incentives split between semiconductors ($13.3 billion) and smartphones ($6.5 billion), aiming to... og:url: https://daily.dev/posts/india-commits-20-billion-to-semiconductors-and-smartphones-targeting-china-s-manufacturing-dominan-poywzz9yp og:image: https://api.daily.dev/og/posts/POywZz9YP.png og:image:alt: India commits $20 billion to semiconductors and smartphones, targeting China's manufacturing dominance og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # India commits $20 billion to semiconductors and smartphones, targeting China's manufacturing dominance **[Collections](https://daily.dev/sources/collections)** · 3 min read · 0 upvotes · 0 comments ## Summary India's cabinet has approved $19.7 billion in manufacturing incentives split between semiconductors ($13.3 billion) and smartphones ($6.5 billion), aiming to challenge China's dominance in global electronics production. The smartphone scheme runs through 2031 with sales incentives and local sourcing bonuses, targeting 35–40% of global smartphone output versus India's current 18%. The semiconductor package builds on a 2021 program that brought Micron and Tata to Gujarat, mirroring the US CHIPS Act approach. India also eliminated import duties on ~85 categories of electronics components to lower production costs. The broader goal is moving up the value chain into chip fabrication and component manufacturing, not just assembly. ## Content India's cabinet has approved $19.7 billion in manufacturing incentives split between semiconductors ($13.3 billion) and smartphones ($6.5 billion), the most aggressive push yet to pull electronics production away from China. ## The smartphone scheme The Mobile Phone Manufacturing Scheme runs through 2031 and offers incentives of 2.25%–5% on eligible sales, with an extra 1.5% bonus for sourcing components locally. The government projects the program will generate $405 billion in mobile production and 60,000 direct jobs over its five-year span. India already has real momentum here. Apple now assembles roughly 25% of its iPhones in the country, and India holds about 18% of global smartphone production. The long-term target is 35–40% of global output — a direct challenge to China's current 63% share. Technology Minister Ashwini Vaishnaw added that Prime Minister Modi wants India to develop its own domestic mobile brand, not just serve as an assembly hub for foreign companies. ## The semiconductor push The $13.3 billion semiconductor package covers chip equipment, materials, design, and R&D. It builds on a 2021 $10 billion program that brought Micron and Tata Group to Gujarat, where India's first chip production has already started. The new funding mirrors the logic of the US CHIPS Act: use government money to de-risk private investment in an industry that takes decades and enormous capital to build. ## Scrapping import duties on components Alongside the incentive packages, India eliminated import duties on roughly 85 categories of machinery and components used in electronics manufacturing. The exemptions — effective immediately and running until March 2029 — cover about 85% of components used in lithium-ion cell production, plus wireless-charging coil inputs for smartphones and select display parts for automotive and industrial use. The duty cuts are designed to lower production costs for domestic manufacturers and make India more competitive with China and Vietnam on price. Shares in Indian electronics-manufacturing-services firms rose on the news. ## What this actually means The honest read here is that India is trying to move up the value chain, not just keep assembling other companies' products. Assembly is relatively easy to attract; component manufacturing and chip fabrication are much harder, and that's where the real economic value sits. The duty exemptions help with costs today, while the incentive schemes are meant to build deeper industrial capacity over the next decade. Whether India can hit its targets depends on infrastructure, workforce training, and whether global supply chains actually shift — or just add India as a secondary node while China stays dominant. The early signs from Apple's expansion and Tata's chip plant are encouraging, but 35–40% of global smartphone production is a long way from 18%. ## Similar posts on daily.dev - [India's CG Semi starts chip production in Gujarat](https://daily.dev/posts/india-s-cg-semi-starts-chip-production-in-gujarat-o55lylfpn) · The Next Web · 0 upvotes · 0 comments - [Taiwan tells US its chip ecosystem isn't going anywhere](https://daily.dev/posts/taiwan-tells-us-its-chip-ecosystem-isn-t-going-anywhere-hdbwbtmrm) · The Register · 1 upvotes · 0 comments - [Japan's gamble to turn island of flowers into global chip hub](https://daily.dev/posts/japan-s-gamble-to-turn-island-of-flowers-into-global-chip-hub-hqugx0izj) · Hacker News · 1 upvotes · 0 comments - [CHIPS Act R&D Stalls as Manufacturing Surges Ahead](https://daily.dev/posts/chips-act-r-d-stalls-as-manufacturing-surges-ahead-o63x0zbwe) · IEEE Spectrum · 0 upvotes · 0 comments - [Taiwan pledges $20bn more in US chip investment while courting the EU, Reuters reports](https://daily.dev/posts/taiwan-pledges-20bn-more-in-us-chip-investment-while-courting-the-eu-reuters-reports-gsfgipchc) · The Next Web · 0 upvotes · 0 comments --- Tags: [#manufacturing](https://daily.dev/tags/manufacturing), [#supply-chain](https://daily.dev/tags/supply-chain) [View this post on daily.dev](https://daily.dev/posts/india-commits-20-billion-to-semiconductors-and-smartphones-targeting-china-s-manufacturing-dominan-poywzz9yp) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"India commits $20 billion to semiconductors and smartphones, targeting China's manufacturing dominance","url":"https://daily.dev/posts/india-commits-20-billion-to-semiconductors-and-smartphones-targeting-china-s-manufacturing-dominan-poywzz9yp","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/india-commits-20-billion-to-semiconductors-and-smartphones-targeting-china-s-manufacturing-dominan-poywzz9yp"},"datePublished":"2026-07-15T14:47:17.308Z","dateModified":"2026-07-15T14:47:57.068Z","description":"India's cabinet has approved $19.7 billion in manufacturing incentives split between semiconductors ($13.3 billion) and smartphones ($6.5 billion), aiming to...","image":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/c4da66ab0d7b91404c71ef6ea4ee9441?_a=AQAEuop","thumbnailUrl":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/c4da66ab0d7b91404c71ef6ea4ee9441?_a=AQAEuop","isAccessibleForFree":true,"articleSection":"Collections","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"Collections","logo":"https://media.daily.dev/image/upload/s--fk_6ycEi--/f_auto,q_auto/v1780996001/logos/collections?_a=BAMAMiWQ0","url":"https://daily.dev/sources/collections"},"commentCount":0,"discussionUrl":"https://daily.dev/posts/india-commits-20-billion-to-semiconductors-and-smartphones-targeting-china-s-manufacturing-dominan-poywzz9yp","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":0},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":0}],"keywords":"manufacturing,supply-chain","timeRequired":"PT3M"} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"Collections","item":"https://daily.dev/sources/collections"},{"@type":"ListItem","position":3,"name":"India commits $20 billion to semiconductors and smartphones, targeting China's manufacturing dominance"}]} ```