India is getting Learning from the CHIPS Act of the U.S. - GPSgyan

As India pays more attention to its semiconductor industry, it wants to work together with all parts of the government to make it successful.

‘The CHIPS Act is not just about bringing semiconductor manufacturing back to the U.S.

 The CHIPS Act of the U.S and Lessons for India


The United States passed a law in 2022 called the CHIPS Act. It has been one year since this law was created to encourage making computer chips and doing scientific research.

What is the CHIPS Act?

  • The CHIPS Act, which stands for the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022, became an official law in the year 2022.

  • The goal is to make the United States safer, more creative, and better at competing with others.

  • The rule is made to motivate people to invest in making computer chips within their own country.

  • The CHIPS and Science Act wants to motivate technology companies to build factories in the country for making computer chips.

Lessons for India:

The CHIPS Act helps us see clearly what we need to do for projects like this. For people in India, it's important to pay attention and learn while the Act is being used, even though we're not sure how well it will work in the long run.

Coordination between Departments:

  • The law needs different parts of the government to work together. 

  • Meanwhile, a department called MeitY takes care of how India's tech industry grows.

  • MeitY started a group called India Semiconductor Mission (ISM) to plan for better computer chips.

Separate Funds:

  • To make things happen according to the Act, they've set up four separate money pools.

  • This setup makes it obvious how valuable semiconductors are.

  • To get money from the CHIPS Act, companies need to share their plans for training their workers.

Collaboration with Private Institutions:

  • India has a chance to do really well in the computer chip business if it trains people to become experts in making these chips. In India, there are special schools that teach people how to design computer chips, even though they're not regular universities.

  • The Chips2 Startup (C2S) program should focus on approving the best training programs from good schools or private companies.

Structuring Accountability:

  • The CHIPS Act created a group called the CHIPS Programme Office (CPO) to set rules for deciding if a project makes financial sense. 

  • To get companies to invest money, the CPO is hiring experts called Financial Structuring Directors and Investment Principals. 

  • In India, they have ways to decide if ideas are good, but there's more they can do to be more open. 

  • The government has to share updates about its semiconductor program every month.


The CHIPS and Science Act is like a great example for how to make rules for the semiconductor industry. The way the United States has set up the rules makes sure they will keep going even when different governments are in charge. Now, India is also trying to pay more attention to the semiconductor industry, and they need to work together as a whole government to do it.

The CHIPS Act teaches us that India needs a plan to find and support new technology research.

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