Mitsubishi executives met West Bengal officials as the state readies a new industrial policy to lure semiconductor and electronics investments, signaling a shift in India's chip race.
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Mitsubishi Electric executives met West Bengal officials this week to discuss a potential semiconductor unit, the state government said. The meeting marks the first concrete foreign interest in the state's chip-making ambitions since it began drafting a new industrial policy.
The policy, still under preparation, will offer incentives for electronics and semiconductor companies while modernizing legacy industries such as steel and chemicals. The government wants to position West Bengal as a preferred destination for investment, according to a statement.
West Bengal's push puts it in direct competition with Gujarat, which hosts India's first commercial semiconductor fab, and Tamil Nadu, where Foxconn is building an electronics campus. India's central government runs a $10 billion production-linked incentive scheme for chip and display manufacturing. The scheme has drawn pledges from Foxconn, Vedanta, and Tower Semiconductor.
A semiconductor unit in West Bengal would require heavy investment in water supply, reliable power, and logistics – areas where the state has historically lagged behind Gujarat and Maharashtra. The new policy is expected to address those gaps through infrastructure subsidies and single-window clearance, the government said.
For the broader Indian electronics ecosystem, more state-level competition means faster development of industrial parks and more pressure on the central government to expand the incentive pool. The current scheme covers only a limited number of applications; a second round has been delayed by budget constraints.
Mitsubishi Electric has not disclosed the size or scope of its proposed unit. The company makes power semiconductors and modules used in industrial equipment and renewable energy systems. A facility in eastern India would give it access to the country's growing solar and electric-vehicle supply chains, while reducing dependence on imports from China and Southeast Asia.
West Bengal has struggled to attract large-scale electronics investment in recent years. The state lost a $3 billion iPhone assembly plant to Karnataka in 2021 after failing to match competitor subsidies. The new policy aims to close that gap with a more flexible incentive structure, officials said.
No timeline has been given for the policy's release. The state is expected to consult industry groups before finalizing the framework.
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