India Approves $19.7 Billion to Expand Chip and Smartphone Manufacturing
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India Approves $19.7 Billion to Expand Chip and Smartphone Manufacturing Khac Phu Nguyen Wed, July 15, 2026 at 2:33 PM EDT 1 min read AAPL This article first appeared on GuruFocus . India has approved another 1.9 trillion rupees ($19.7 billion) in incentives to strengthen domestic semiconductor and smartphone production as Prime Minister Narendra Modi pushes the country to become a larger global manufacturing hub. Modi's cabinet approved 1.28 trillion rupees for the semiconductor sector and 625 billion rupees for mobile phone production, according to Technology Minister Ashwini Vaishnaw. The chip package is expected to support semiconductor design, manufacturing equipment, research and development, and workforce development, potentially helping India attract more advanced technology investment. Warning! GuruFocus has detected 4 Warning Sign with PYPL. Is AAPL fairly valued? Test your thesis with our free DCF calculator. The new semiconductor initiative builds on India's $10 billion program introduced in 2021, which offered to cover half the cost of establishing qualifying chip projects. That earlier support helped bring Micron Technology ( NASDAQ:MU ), a U.S. memory chipmaker, and Tata Group, an Indian conglomerate with businesses ranging from salt to software, to Gujarat for semiconductor projects. India's chip industry remains at an early stage, but the additional funding could accelerate several major projects as global demand rises across artificial intelligence, smartphones, automobiles, appliances, and other technology markets. India is also seeking to repeat the manufacturing progress it has made with Apple ( NASDAQ:AAPL ), the U.S. technology company behind the iPhone, which now assembles about 25% of its iPhones in the country with support from Modi's production-linked subsidies. The latest smartphone incentives are expected to support Indian manufacturers in a domestic market currently dominated by Chinese brands. Vaishnaw said Modi has directed the government to help create an Indian mobile phone brand, suggesting the package could support both foreign investment and the development of domestic technology companies.
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