In a bold move to position itself at the forefront of India’s electronics and semiconductor revolution, the Government of Madhya Pradesh has launched the Madhya Pradesh Semiconductor Policy 2025. This policy isn’t just another document—it’s a strategic leap into a trillion-dollar global industry, backed by incentives, infrastructure, and intent.
Let’s unpack what this policy means for investors, technologists, startups, and the future of chip manufacturing in India.
🔍 What is the Madhya Pradesh Semiconductor Policy 2025?
The Madhya Pradesh Semiconductor Policy 2025 is a state-level initiative designed to catalyze investment in semiconductor design, manufacturing (fabs), and allied industries like electronics assembly and chip packaging. By offering a comprehensive incentive framework, the policy aims to attract global players and Indian enterprises to set up facilities in the state.
This policy was approved in anticipation of the Global Investors Summit 2025, with Chief Minister Mohan Yadav emphasizing Madhya Pradesh’s readiness to become a tech manufacturing hub.
🎯 Key Objectives of the Policy
Attract FDI and Domestic Investment
Create an attractive investment environment for both international and domestic semiconductor companies.Promote Chip Design & Fabrication
Encourage fabless chip design startups and full-fledged semiconductor fabs in the state.Enable a Skilled Workforce
Collaborate with technical institutes and universities to build a talent pipeline for chip design, testing, and embedded systems.Drive Innovation through R&D
Offer support for innovation, prototyping, and semiconductor research through dedicated R&D centers and grants.
💰 Financial Incentives at a Glance
1. Capital Subsidies
Up to 25% of total project cost or 50% of the central government's subsidy (whichever is lower).
If central support is absent, the state may offer up to 40% capital subsidy, capped at ₹150 crore.
2. Interest Subsidies
Up to 6% interest subsidy for a period of 5 years, capped at ₹10 crore.
3. Electricity Tariff Concession
₹2 per unit concession for 10 years to reduce operational cost for units.
4. Land Subsidy
Industrial land available at subsidized rates in designated semiconductor zones.
These incentives make Madhya Pradesh a high-value destination for setting up fabs or ancillary units.
🏗️ Custom Support for Mega Projects
If you're planning an investment over ₹400 crore, the policy offers customized packages that may include:
Tailored infrastructure support
Extended tax benefits
Priority clearances
Plug-and-play industrial spaces
The focus is clear: big investors get bespoke support to de-risk and de-speed their semiconductor projects.
🔬 Push for R&D and Design Ecosystem
Recognizing that chip innovation doesn't end at the foundry, the policy encourages:
Setting up of chip design & verification centers
Funding of semiconductor IP development
Academic collaboration for EDA tools access and training
Fast-track grants for design-led startups
The government wants Madhya Pradesh to be more than a manufacturing hub—it’s aiming for a full-stack chip ecosystem.
🤝 Global Collaborations & PPP
Madhya Pradesh is actively seeking international partnerships, especially post the CM’s visit to Japan, where talks focused on:
Metro and transport tech
Smart cities
Urban waste & water management
In the semiconductor sector, this could translate to joint ventures, technology transfers, and FDI-led fabrication units.
📍 Why Madhya Pradesh? Strategic Advantages
Central Location: Efficient logistics and pan-India distribution potential
Political Stability: Business-friendly governance with long-term vision
Power & Water Availability: Critical for fabs and electronics units
Connectivity: Road, rail, and air connectivity to all major metros
The state isn’t starting from scratch—it’s building on industrial clusters in Bhopal, Indore, Pithampur, and Gwalior, adding semiconductor-specific infrastructure.
🛠️ Infrastructure in the Making
The policy will lead to the development of:
Electronics Manufacturing Clusters (EMCs)
Chip Parks with dedicated cleanroom environments
Common Facility Centres for testing, packaging, and verification
Plug-and-play infrastructure with single-window clearances
📈 Long-Term Vision: Global Semiconductor Competitiveness
With the global chip shortage and geopolitics pushing nations to localize chip production, India is aiming to de-risk supply chains and become self-reliant. Madhya Pradesh’s policy aligns with this vision and complements central government schemes like:
India Semiconductor Mission (ISM)
PLI Scheme for Semiconductors & Display Manufacturing
📢 Who Should Care?
Electronics & Automotive OEMs
Fabless chip startups
Embedded system designers
Semiconductor R&D companies
Global chipmakers exploring India
Angel investors and VCs in deep tech
If you're in any of these sectors, Madhya Pradesh’s Semiconductor Policy 2025 opens a unique early-mover advantage.
🌐 Useful Links & Resources
❓FAQs about MP Semiconductor Policy 2025
Q1: Is this policy only for large-scale companies?
A: No, startups and MSMEs in chip design are also eligible for incentives, especially under the R&D and prototyping support schemes.
Q2: What kind of land benefits are offered?
A: Eligible units can purchase land at subsidized rates in designated chip zones with access to utilities.
Q3: Is this policy aligned with the central government’s semiconductor push?
A: Yes, the policy is designed to complement national-level schemes like ISM and PLI, often providing top-up subsidies.
Q4: When will the policy be active?
A: The policy was approved in February 2025 and is expected to roll out before or during the Global Investor Summit 2025.
🚀 Final Word: Is MP Ready to Chip In?
Yes. And how.
The Madhya Pradesh Semiconductor Policy 2025 is not just about incentives. It's about intent, infrastructure, and integration. The state is actively inviting industry leaders to co-create a globally competitive semiconductor ecosystem—one that's not stuck on paper but etched on silicon.
If you're a stakeholder in India's tech manufacturing future, this is your window to enter. Madhya Pradesh isn't waiting. And maybe, neither should you.
Read about Industrial Promotion Policy 2025 - here
Got more questions about Indian government processes and schemes? Ask Jaankaar Bharat
Made with Superblog