India's cabinet has approved a fresh injection of 1.28 trillion rupees ($13.30 billion) into its semiconductor program, signaling an intensified push to become a global electronics manufacturing hub. Information Minister Ashwini Vaishnaw announced the decision on Wednesday, marking the country's second major incentive package in five years. Main Developments The new capital will fund intellectual property development, chip design, additional fabrication plants, and research and development, according to a government statement. This builds on a $10 billion incentive plan launched in 2021, under which India has already approved 12 manufacturing units and 24 semiconductor design projects. Separately, the cabinet approved 625 billion rupees for a five-year program to boost mobile phone manufacturing. Incentives range from 2.25% to 5% on eligible sales, with an extra 1.5% linked to domestic sourcing of key components. The government expects this program to create around 60,000 direct jobs. Read also: Malaysian Palm Oil Futures Slip as Market Awaits Cues Background Wednesday's announcement comes roughly five years after India unveiled its initial $10 billion semiconductor incentive plan. That earlier push was part of a broader strategy to position the country as a global electronics production hub, reducing reliance on imports from East Asia. Why It Matters India's semiconductor push aims to capture a share of the global chip market, which is dominated by Taiwan, South Korea, and China. The fresh funding addresses critical gaps in chip design and fabrication infrastructure, potentially attracting foreign investment and reducing supply chain vulnerabilities for electronics manufacturers worldwide. What's Next The government will now deploy the approved capital to develop intellectual properties and chip designs, while setting up more fabrication plants. The mobile phone manufacturing program, with its differentiated incentive rates, is expected to accelerate domestic production and component sourcing over the next five years.