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Make in Maharashtra Semiconductor Fabless Policy 2024-2030

Pioneering India's Semiconductor Sovereignty

The Maharashtra Semicon Fabless Policy 2024 is a strategic and visionary initiative aligned with India’s growing need for semiconductor sovereignty. As the world increasingly depends on semiconductors for almost every aspect of digital life—from smartphones to advanced computing—the importance of self-reliance in semiconductor design and production has never been greater. Make in Maharashtra’s aim is to lead India’s charge toward achieving semiconductor independence, ensuring that the state is at the forefront of the global semiconductor revolution.

This policy also recognizes the critical role that semiconductors play in powering data centers and enabling next-generation technologies such as Generative AI. By building a strong foundation for semiconductor design and development, Maharashtra is not only securing its economic future but also contributing to the national objective of creating a secure and resilient digital infrastructure that supports artificial intelligence (AI), cloud computing, and data sovereignty.

Semiconductor

Vision for 2030: Maharashtra Leading India’s Semiconductor Sovereignty

By 2030, Make in Maharashtra 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
  • Attracting 100-120 fabless semiconductor companies to Maharashtra, with the goal of making the state a key player in the global semiconductor supply chain.
  • Contributing to India’s national semiconductor strategy by ensuring that Maharashtra leads in the design of secure chips essential for national security, critical infrastructure, and the defense sector.
  • Supporting the development of next-generation data centers powered by indigenous chips that enable secure cloud computing and data sovereignty, critical for Generative AI and other AI-based innovations.
  • Creating 5,000 to 6,000 high-end jobs in semiconductor design, research, and development, contributing to both national security and economic prosperity.

Mission: Driving India’s Semiconductor Sovereignty and Digital Future

The mission of Make in Maharashtra 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 Maharashtra Semicon Fabless Policy 2024, the state aims to:

  • Support India’s national security interests by developing trusted and secure chips for sensitive sectors such as defense, telecom, and critical infrastructure.
  • Develop cutting-edge data center infrastructure, ensuring that India’s data sovereignty is protected and that future technologies like Generative AI are built on a foundation of secure, indigenous hardware.
  • Establish Maharashtra as the leader in fabless chip design by attracting investments, promoting innovation, and creating an ecosystem of collaboration between academia, industry, and government.
  • Empower global corporations to set up their R&D centers in Maharashtra, focusing on AI chips, machine learning processors, and cloud computing chips that drive the next wave of AI innovation.
Semiconductor Policies

Key Objectives: Securing India’s Semiconductor Future

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

semiconductor design
  1. Semiconductor Sovereignty: By focusing on the development of indigenous chips, Maharashtra will contribute to India’s goal of achieving semiconductor self-reliance, critical for national security, data privacy, and AI-based technologies.
  2. Building Data Centers Powered by Indigenous Chips: The policy emphasizes building secure data centers that use domestically designed chips, which will power critical digital infrastructure and AI-based platforms, ensuring that India’s data remains sovereign and protected.
  3. Attracting Global Investments in Fabless Design: Maharashtra will aim to attract 100-120 fabless semiconductor companies by offering incentives for innovation, R&D, and productization, supporting both national and international markets.
  4. Fostering R&D in AI and Secure Computing: The state will promote R&D in AI chips, quantum computing, and secure chip designs that drive the next wave of AI innovation, including Generative AI models that require vast computing power and security.
  5. Developing Industry-Ready Talent: The policy will invest in building a talent pipeline by establishing partnerships between academia and industry, ensuring Maharashtra has a workforce skilled in semiconductor design, VLSI, and AI-based hardware solutions.

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

Developing Fabless Semiconductor Clusters

Maharashtra will establish dedicated semiconductor design clusters in Pune, Nagpur, Mumbai, and Aurangabad, offering world-class infrastructure and collaborative spaces for semiconductor companies. These clusters will serve as hubs for semiconductor design, R&D, and innovation, driving the development of secure chips that power data centers, AI platforms, and national defense systems.

Fabless Semiconductor
Indigenous Chips

Building Secure Data Centers Powered by Indigenous Chips

To ensure data sovereignty and power the next generation of cloud computing and AI infrastructure, Maharashtra will focus on building secure data centers that use domestic chips. These data centers will not only support critical sectors like banking, telecom, and defense but also provide the necessary infrastructure for Generative AI, machine learning, and Big Data analytics.

Promoting AI-Based Semiconductor Innovation

Maharashtra will drive innovation in AI-based chip design, with a focus on developing AI processors and edge-computing chips that enable faster and more secure AI applications. The policy will support R&D in AI chips, which are critical for scaling Generative AI models that require vast computational power and secure hardware.

Semiconductor and AI Ecosystems

Fostering Talent for Semiconductor and AI Ecosystems

Make in Maharashtra will prioritize the development of industry-ready talent by partnering with leading academic institutions to offer specialized courses in VLSI, AI chip design, and cloud computing hardware. This will ensure that Maharashtra has the skilled workforce needed to support the growth of fabless semiconductor companies and AI-focused R&D centers.

Strengthening India’s National Security through Secure Chips

The policy will focus on developing secure chip designs for sensitive sectors such as defense, telecommunications, and critical infrastructure. By promoting the development of trusted semiconductors, Maharashtra will contribute to India’s national security and reduce dependence on foreign semiconductor technologies.

secure chip designs

Incentives for Fabless Semiconductor and AI Investments

The Maharashtra Semicon 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

Maharashtra’s Single Window Clearance System will ensure seamless approvals for all semiconductor and AI-focused projects, providing fast-tracked clearances for national security-related chip designs and AI infrastructure projects. The Apex Committee will oversee the policy’s implementation and ensure that companies receive timely approvals, incentives, and support to scale their operations.

Semiconductor and AI Future

Conclusion: Maharashtra at the Forefront of India’s Semiconductor and AI Future

The Maharashtra Semicon Fabless Policy 2024 positions the state as a global leader in semiconductor design, data sovereignty, and AI innovation. By contributing to India’s semiconductor sovereignty, building secure data centers, and developing AI-focused hardware, Maharashtra will play a pivotal role in shaping the future of digital India.

Make in Maharashtra 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 Maharashtra

The Make in Maharashtra is a Public Benefit Corporation (PBC) with a mission to establish Maharashtra as 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 Maharashtra’s unique position, Make in Maharashtra strives to drive substantial economic growth, spur innovation, and solidify Maharashtra’s stature in the international economic arena, resonating with the government’s vision of a technologically advanced and interconnected economy.

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