Madhya Pradesh is set to emerge as a key player in India’s semiconductor industry with the introduction of the Madhya Pradesh Semiconductor Policy 2025. Announced by the Department of Science and Technology, Government of Madhya Pradesh (GoMP), this policy aims to position the state as a major hub for semiconductor innovation, manufacturing, and technological advancements.

By adopting a value chain-focused approach, the policy covers every aspect of semiconductor production, from wafer fabrication and chip design to PCB manufacturing and advanced packaging. This holistic strategy ensures that Madhya Pradesh capitalizes on the growing semiconductor market, making it an attractive destination for investments in the sector.

One of the distinguishing features of the policy is its deep focus on the semiconductor value chain, ensuring that all critical aspects of chip manufacturing and design are effectively addressed. It provides comprehensive support for wafer fabrication units, encouraging large-scale capital investments in semiconductor manufacturing.

Additionally, the policy prioritizes chip design and fabless semiconductor companies by offering various incentives, including:

• Design-linked incentives to promote innovation.
• Payroll support for acquiring skilled talent.
• Financial assistance for research and development (R&D), tape-outs, and intellectual property (IP) creation.

This focus on strengthening chip design capabilities aligns with India’s broader goal of becoming self-reliant in semiconductor manufacturing.

Recognizing the increasing significance of PCB manufacturing and advanced packaging, the state is also extending incentives to component makers and backend players. By fostering an ecosystem where all segments of semiconductor production can thrive, Madhya Pradesh aims to ensure a seamless and competitive semiconductor supply chain within the state.

To sustain long-term growth in the semiconductor industry, the policy places a strong emphasis on talent development. Key initiatives include:

• Specialized VLSI and semiconductor courses in academic institutions.
• Internship programs are designed to bridge the gap between industry and academia.
• Industry-academia collaboration to nurture a highly skilled workforce capable of driving innovation in semiconductor technologies.

The government is also facilitating the establishment of Centers of Excellence (CoEs) to further enhance research and innovation in semiconductor technology. These centres will serve as knowledge hubs, supporting new startups and established firms in developing cutting-edge semiconductor solutions.

The Madhya Pradesh Semiconductor Policy 2025 is a significant step towards India’s semiconductor self-sufficiency. By creating an investor-friendly environment, fostering R&D, and developing a skilled workforce, the state is set to become a critical player in India’s semiconductor revolution.

This policy aligns with the Government of India’s vision to reduce dependency on imports and strengthen domestic semiconductor production. With Madhya Pradesh taking the lead in this sector, the policy is expected to attract significant domestic and international investments, boosting economic growth and technological advancement in the region.

Also Read | Madhya Pradesh Announces 25 Percent Capital Subsidy for Semiconductor Industry

As the semiconductor industry continues to expand globally, proactive policies like this will play a crucial role in positioning Madhya Pradesh as a global semiconductor hub, contributing to India’s aspirations of becoming a leader in semiconductor technology.

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