New Delhi: The Delhi government’s proposed semiconductor policy (2026–2031) seeks to position the national capital as a major hub for semiconductor chip design, research and development (R&D), intellectual property (IP) creation and advanced packaging, with a focus on attracting investment, creating high-value jobs and building a skilled workforce.
The draft policy, seen by HT, identifies five key objectives — investment attraction, employment generation, capacity building, creation of an innovation ecosystem and development of an integrated semiconductor supply chain. Under the first objective, the government plans to attract domestic and foreign investment into fabless chip design, semiconductor R&D and assembly, testing, marking and packaging (ATMP) and outsourced semiconductor assembly and test (OSAT) sectors. The policy also seeks to reverse the migration of semiconductor talent by encouraging professionals and alums of institutions such as IIT Delhi, IIIT Delhi, Delhi Technological University and Netaji Subhas University of Technology to return to Delhi. Given Delhi’s shortage of large industrial land and water constraints, the policy does not seek to promote large silicon wafer fabrication plants. Instead, it will focus on relatively low-footprint ATMP/OSAT and specialised compound semiconductor or sensor facilities.
The government has proposed a 50% additional capital subsidy on capital expenditure assistance approved by the Centre under India’s semiconductor mission for eligible ATMP/OSAT and compound semiconductor projects, capped at ₹ 50 crore per project. The policy proposes Centres of Excellence with institutions such as IIT Delhi and DTU, with the government bearing up to 50% of the project cost, subject to a ₹ 10 crore cap per centre. Standalone R&D centres will be eligible for a 25% capital subsidy, capped at ₹ 10 crore, while patent filing costs will be reimbursed at 75% within prescribed limits.
Delhi IT minister Pankaj Singh told HT: “We plan to bring the policy in public domain by the end of this month following Cabinet approval. Such units generally require significantly less land than large fabrication plants, the draft says.
