Madhya Pradesh, a central Indian state, said its semiconductor summit in Indore drew investment proposals worth more than Rs 15,425 crore and could create over 14,450 jobs, according to figures reported after the two-day event closed on Oct. 24.

The total matters less for its size than for what it shows about India's chip push. With the federal India Semiconductor Mission now backing a dozen projects, states are competing for the next wave of packaging, design and electronics plants, and they are using their own subsidies to do it. For investors in Asia, the contest is creating openings for Japanese, Taiwanese and Singaporean suppliers that want a foothold in India's growing electronics base.

What Madhya Pradesh Signed in Indore

The headline number has two parts, according to Swarajya. About Rs 5,800 crore came from proposals that Chief Minister Mohan Yadav collected in one-to-one meetings with a dozen investors on the summit's opening day, with more than 10,000 jobs expected. Another Rs 9,625 crore is tied to five companies that received land allotment letters, with more than 4,450 direct jobs planned in Bhopal, Indore and Gwalior.

Much of that second block is not semiconductor manufacturing. The largest item is a 50-megawatt hyperscale data center that Cyteck RE plans at Ganga Malanpur in Gwalior, valued at Rs 6,415 crore, according to Indian Masterminds. Una Ecosystems was given land for a 1.5-gigawatt-hour lithium cell plant in Bhopal worth Rs 2,000 crore. Auriga IT Solutions plans a Rs 500 crore global capability center in Indore, Meena Circuits a Rs 400 crore electronics manufacturing unit and Kaynes Electronics a Rs 310 crore plant near Bhopal.

The same publication listed Una's Rs 2,000 crore again among the one-to-one proposals, so the combined total may count that project twice. The state has not published a breakdown that resolves the overlap.

The chip-specific commitments are smaller and earlier in the pipeline. Seven companies received letters for office space at an IT park in Indore's Pardesipura area, with more than 1,280 jobs expected. They include ADT Semiconductors, which plans a design and research center, Truechip Solutions of New Delhi and H-Semi Products of Singapore, which plans research and sample production for chip assembly and test units.

Hyderabad-based Spintronics AI Semiconductors, which designs custom and mixed-signal chips, told the chief minister it could invest up to Rs 2,300 crore over several phases in a design and research facility, employing about 1,500 people, Indian Masterminds reported. The first phase would cost Rs 450 crore to Rs 550 crore. A separate Indian Masterminds summary of the one-to-one meetings listed a smaller Spintronics proposal of Rs 1,800 crore in two phases with 150 jobs. The company asked the state for land, incentives, computing infrastructure and electronic design software.

Paras Semiconductors and the Packaging Bet

The single largest chip project on the state's books predates the summit. Paras Semiconductors, the chip unit of listed defense supplier Paras Defence and Space Technologies, signed a memorandum of understanding with the Madhya Pradesh government in July for an advanced packaging plant on 50 acres along the Indore-Ujjain corridor. The company put the proposed investment at Rs 6,200 crore in a filing with India's National Stock Exchange.

The plant would package devices for sensors, optical and optronic systems and other strategic uses, with a possible later move into AI chips, the filing said. Paras Semiconductors chief executive Santosh Kumar spoke at the summit, where he cited a planned Rs 6,000 crore assembly unit, according to Indian Masterminds.

Packaging, also called OSAT for outsourced semiconductor assembly and test, has become the entry point for most Indian states. It needs less capital and less specialized process know-how than a wafer fab.

State Incentives Stack on the Federal Program

Madhya Pradesh's Semiconductor Policy 2025 offers capital support equal to 25% of project spending or 50% of the federal incentive, whichever is lower, Swarajya reported. That sits on top of central support from the India Semiconductor Mission, whose second phase carries an outlay of Rs 1,27,500 crore, according to Business Today. Twelve chip manufacturing projects have been approved under the program, three of them already in commercial production, Business Today reported when Prime Minister Narendra Modi opened SEMICON India in New Delhi in September.

The state is also courting Asian capital directly. The summit drew more than 1,000 delegates, including representatives from Japan, South Korea, Taiwan and Sweden, The Pioneer reported. Yadav met Lung-Jieh Yang, science director at the Taipei Economic and Cultural Center in New Delhi, Taiwan's representative office in India, to discuss research links and investment, though no Taiwanese company or amount was named. The state released its chip policy in Japanese, Korean and Taiwanese editions, Indian Masterminds reported.

Madhya Pradesh signed agreements with five institutions, including SEMI India and the government's Semiconductor Laboratory in Mohali, on training and research, and said it would set up a semiconductor center of excellence for chip design and research and another for photonics and quantum technologies, The Pioneer reported.

The pitch faces established competition in Asia. Malaysia's Penang, which shipped more than half of the country's record September exports, has spent decades building the packaging and test base that Indian states now want.

The next test comes in January 2027, when Madhya Pradesh hosts its Global Investors Summit, Yadav invited both Spintronics and Taiwan's Yang to attend.