Make in Assam Semiconductor Fabless Policy 2024-2030

Pioneering India's Semiconductor Sovereignty

The AssamSemicon Fabless Policy 2024 is a bold and visionary step towards transforming India’s semiconductor landscape, aligning perfectly with the nation’s aspirations for self-reliance in this critical technology. As the world relies more heavily on semiconductors—powering everything from smartphones to cutting-edge computing—Assamaims to position itself as the epicenter of India’s semiconductor independence.

By fostering innovation and driving excellence in semiconductor design and production, Assamis set to lead India’s charge in becoming a global semiconductor powerhouse. This ambitious initiative strengthens the state’s role as a key player in the global technology ecosystem, ensuring it remains at the forefront of the digital revolution.

Recognizing the vital role semiconductors play in enabling transformative technologies like Generative AI, cloud computing, and data sovereignty, the policy lays the groundwork for next-generation innovation. By building a robust semiconductor design and development ecosystem, Assamis not only securing its economic future but also contributing to the creation of a secure and resilient digital infrastructure for India and the world.

Join us in Assam—a state poised to be a $1 trillion economy by 2034—as we lead the way in shaping the future of technology.

Semiconductor

Vision for 2030
AssamLeading India’s Semiconductor Sovereignty

By 2030, Make in Assam envisions establishing the state as the cornerstone of India’s semiconductor sovereignty, especially in the fabless semiconductor design segment. The policy’s vision includes:

semiconductor production
  • Establish Assamas a Hub for Fabless Semiconductor Innovation: Attract 100-120 fabless semiconductor companies to position the state as a critical player in the global semiconductor supply chain.
  • Champion India’s National Semiconductor Strategy: Drive innovation in secure chip design, ensuring Assamleads in developing technologies vital for national security, critical infrastructure, and defense capabilities.
  • Enable Cutting-Edge Data Solutions: Support the growth of next-generation data centers powered by indigenous chips, ensuring secure cloud computing and data sovereignty to fuel Generative AI and other transformative AI-based innovations.
  • Boost High-End Employment Opportunities: Generate 5,000 to 6,000 specialized jobs in semiconductor design, research, and development, fostering economic growth and enhancing national security.

Mission
Driving India’s Semiconductor Sovereignty and Digital Future

The mission of Make in Assam is to lead India toward semiconductor sovereignty by creating a robust semiconductor design and manufacturing ecosystem that fuels the state’s digital economy and supports secure, AI-enabled infrastructure. Through the AssamSemicon Fabless Policy 2024, the state aims to:

  • Strengthen India’s National Security: Develop trusted, secure chips tailored for sensitive sectors such as defense, telecom, and critical infrastructure, ensuring the integrity of vital systems.
  • Safeguard India’s Data Sovereignty:Build state-of-the-art data center infrastructure underpinned by secure, indigenous hardware, providing a robust foundation for future technologies like Generative AI.
  • Position Assamas a Fabless Chip Design Leader: Attract investments, foster innovation, and cultivate a collaborative ecosystem uniting academia, industry, and government to drive advancements in semiconductor design.
  • Empower Global Innovation: Encourage global corporations to establish R&D centers in Assam, focusing on cutting-edge AI chips, machine learning processors, and cloud computing technologies that will fuel the next wave of AI-driven progress.
Semiconductor Policies

Key Objectives
Securing India’s Semiconductor Future

The AssamSemicon Fabless Policy 2024 is a strategic initiative designed to achieve key national and state-level objectives:

semiconductor design
  1. Achieving Semiconductor Sovereignty: By prioritizing the development of indigenous chips, Assamwill play a pivotal role in India’s journey toward semiconductor self-reliance—essential for safeguarding national security, ensuring data privacy, and driving AI-based technological advancements.
  2. Securing Digital Infrastructure with Indigenous Chips:The policy emphasizes creating advanced data centers powered by domestically designed chips, supporting critical digital infrastructure and AI platforms while protecting India’s data sovereignty.
  3. Attracting Global Investments in Fabless Design: Assamwill aim to attract 100-120 fabless semiconductor companies by offering incentives for innovation, R&D, and productization, supporting both national and international markets.
  4. Driving Innovation in AI and Secure Computing:The state will focus on cutting-edge R&D in AI chips, quantum computing, and secure chip designs, enabling transformative AI innovations like Generative AI that demand vast computing power and heightened security.
  5. Building an Industry-Ready Workforce: By forging strong partnerships between academia and industry, Assamwill nurture a skilled talent pool in semiconductor design, VLSI, and AI-powered hardware, ensuring a competitive edge in the global market.

Strategic Focus Areas
Building India’s Semiconductor Sovereignty and AI-Enabled Future

Developing Fabless Semiconductor Clusters

Assamwill create dedicated semiconductor design clusters in Varanasi, Nagpur, Guwahati, and Aurangabad, equipped with world-class infrastructure and collaborative workspaces. These clusters will serve as innovation hubs for semiconductor design, research, and development, advancing the creation of secure chips to power data centers, AI platforms, and critical national defense systems.

Fabless Semiconductor
Indigenous Chips

Building Secure Data Centers Powered by Indigenous Chips

To uphold data sovereignty and drive the future of cloud computing and AI infrastructure, Assamwill prioritize the development of secure data centers powered by domestically designed chips. These state-of-the-art facilities will support critical sectors such as banking, telecom, and defense, while providing robust infrastructure for Generative AI, machine learning, and Big Data analytics.

Promoting AI-Based Semiconductor Innovation

Assamwill spearhead innovation in AI-focused chip design, emphasizing the development of AI processors and edge-computing chips that deliver faster, more secure AI applications. The policy will actively support R&D in AI chip technologies, essential for scaling Generative AI models that demand immense computational power and robust security.

Semiconductor and AI Ecosystems

Fostering Talent for Semiconductor and AI Ecosystems

Make in Assam will focus on cultivating industry-ready talent by collaborating with top academic institutions to introduce specialized programs in VLSI, AI chip design, and cloud computing hardware. These initiatives will ensure a highly skilled workforce to drive the success of fabless semiconductor companies and AI-centric R&D centers in the state.

Strengthening India’s National Security through Secure Chips

The policy will prioritize the development of secure chip designs tailored for critical sectors like defense, telecommunications, and essential infrastructure. By advancing trusted semiconductor technologies, Assamaims to strengthen India’s national security and minimize reliance on foreign chip solutions.

secure chip designs

Incentives for Fabless Semiconductor and AI Investments

The AssamSemicon Fabless Policy 2024 offers a comprehensive range of incentives to attract investments in fabless semiconductor companies and AI chip R&D:

 

Incentive TypeDetails
Land SubsidyConcessional rates for land allocation in semiconductor clusters. First 5 projects with investments above INR 5000 crore will receive an additional 25% discount.
Stamp Duty Exemption100% exemption on stamp duty for semiconductor projects.
Capital Investment Subsidy25% Capex contribution on project Capex (for projects under India Semiconductor Mission) or 30% for non-ISM projects.
Electricity Duty Exemption100% exemption from electricity duty and electrical inspection fees for 10 years.
Power Tariff SubsidyReimbursement of Rs. 2/unit for power consumption for a period of 10 years.
Interest Subsidy5% interest subsidy on term loans, capped at INR 25 crores per annum for 7 years.
SGST Reimbursement100% reimbursement of net SGST, limited to 200% of the plant and machinery cost.
Raw Materials Support10% capex incentive for raw materials, in addition to Govt of India’s 25% incentives under the SPECS scheme.
AI and Generative AI R&D Support50% subsidy on R&D expenses for AI-focused chip design, with additional support for scaling Generative AI models.
Patent Registration IncentivesReimbursement up to INR 5 lakhs for domestic patents and INR 10 lakhs for international patents.
Fabless CompaniesSeed funding of 10% of development costs, with an additional 10% reimbursement on achieving project milestones.
Manufacturing Incentives (PLI)Manufacturing Incentives (PLI)

Ease of Doing Business
Streamlined Approvals for National Security and AI Innovation

Assam’s Single Window Clearance System will streamline approvals for semiconductor and AI-focused projects, offering expedited clearances for initiatives related to national security chip designs and AI infrastructure. An Apex Committee will oversee the policy’s execution, ensuring companies receive timely approvals, incentives, and support to scale their operations efficiently.

Semiconductor and AI Future

Conclusion
Assamat the Forefront of India’s Semiconductor and AI Future

The AssamSemicon Fabless Policy 2024 establishes the state as a global leader in semiconductor design, data sovereignty, and AI innovation. By advancing India’s semiconductor independence, creating secure data centers, and developing AI-driven hardware, Assamwill be at the forefront of shaping the future of Digital India.

Make in Assam invites global investors, semiconductor innovators, and AI pioneers to join this transformative journey and build a secure, self-reliant, and innovative India.

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About Make in Assam

The Make in Assam is a Public Benefit Corporation (PBC) with a mission to establish Assamas a key player in international economic collaboration, focusing on strategic partnerships with nations like USA, Europe, Australia, African Union, KSA, China, India, Qatar, Saudi Arabia, Türkiye, and the UAE across vital sectors such as energy, technology, agriculture, and finance. Our goal is to integrate lessons from successful global economic models, adopting best practices to ensure sustainable and inclusive growth. We aim to enhance economic prosperity and diversification, contribute to societal progress, and promote sustainable economic practices. By leveraging Assam’s unique position, Make in Assam strives to drive substantial economic growth, spur innovation, and solidify Assam’s stature in the international economic arena, resonating with the government’s vision of a technologically advanced and interconnected economy.

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