This year, the industry has been ​beset by a global scramble for chip production capacity that ⁠has been sharpened by surging computing demand for AI and entangled with geopolitical ​tensions.

While Washington and Beijing have imposed tit-for-tat export restrictions on chip technology, India ​has cast itself as a "trusted partner", courting companies looking to diversify away from Taiwan and China.

"The world stands in utmost need of new and reliable manufacturing locations. I say with ​great responsibility that India is continuously preparing itself for this," Prime Minister ​Narendra Modi said.

India's semiconductor consumption is projected to reach as much as $110 billion by 2030, ‌up from $45 ⁠billion to $50 billion in 2025, according to government estimates.

Applied Materials, one of the world's largest semiconductor equipment makers, said its India investment will center on research, supply chain scale-up and workforce growth.

India, which has committed more than $21 billion ​across two key semiconductor ​incentive programs, remains ⁠a late entrant to the capital-intensive industry that countries like Taiwan have spent decades building.

Twelve projects have been approved ​under India's incentive program in the past five years, and ​three chip-packaging ⁠plants, including one run by US-based Micron Technology have begun commercial production.

India's push, however, has yet to produce a single chip from a large-scale fabrication plant. Commercial ⁠production ​from the mission's marquee project, a $10 billion Tata ​Electronics fab in the western state of Gujarat, has been delayed by nearly two years.