Spain’s Suber Group to invest USD 2 billion in semiconductor industry in MP
A Spain-based data infrastructure company announced an investment of USD 2 billion (approximately Rs 19,000 crore) in the semiconductor and data centre industry in Madhya Pradesh.
The investment is projected to create close to 5,000 direct employment opportunities in the state.
The announcement was made at a state-hosted technology investment conclave focused on global capability centres (GCCs), data centres, and semiconductors.
As part of facilitation for a related data centre project, the state government allotted 15 acres of land in an industrial area within six days of a request, highlighting expedited land-allocation efforts to attract such investment.
India Semiconductor Mission (ISM)
The India Semiconductor Mission was launched in December 2021 under the Ministry of Electronics and Information Technology (MeitY), with an outlay of Rs 76,000 crore, to build a sustainable semiconductor and display ecosystem in India. It offers fiscal support of up to 50% of project cost (on a pari-passu basis with state governments) for semiconductor fabs, display fabs, compound semiconductor units, and Assembly, Testing, Marking and Packaging (ATMP/OSAT) facilities.
Key Details
- Nodal ministry: MeitY; implementing body: India Semiconductor Mission (a division under Digital India Corporation).
- As of 2026, roughly 10 semiconductor manufacturing projects have been approved nationally, with cumulative investment commitments of about Rs 1.6 lakh crore across multiple states.
- States such as Gujarat, Maharashtra, Karnataka, and Uttar Pradesh have their own complementary semiconductor policies offering land, power, and additional subsidies.
The Madhya Pradesh investment adds to this expanding map of state-level semiconductor and electronics investment, reflecting the Centre-state co-funding model central to ISM's fiscal support structure.
Data Centres, Immersion Cooling, and the GCC Ecosystem
Global Capability Centres (GCCs) are offshore units set up by multinational companies in India to perform high-value engineering, R&D, and IT/back-office functions; India hosts the largest number of GCCs globally. Data centres supporting GCCs and AI workloads increasingly use liquid or immersion cooling — where server components are submerged in a thermally conductive, non-conductive electric ("dielectric") fluid — to manage the higher heat loads of dense computing racks more efficiently than traditional air cooling.
Key Details
- Immersion cooling can support significantly higher power density per server rack than air-cooled data centres, which is important as AI compute demand rises.
- Madhya Pradesh's conclave explicitly bundled GCCs, data centres, and semiconductors as a combined investment theme, since these sectors share infrastructure needs (land, power, connectivity).
- Semiconductor manufacturing itself is highly water- and power-intensive, making state-level land and utility facilitation (like the 15-acre allotment cited) a key investment-attraction lever.
The investing company's core business is liquid/immersion cooling technology for data centres, linking this announcement to both the semiconductor manufacturing push and India's broader data centre and AI infrastructure buildout.
FDI in Electronics and Semiconductors
India permits 100% Foreign Direct Investment (FDI) under the automatic route in electronics manufacturing, including semiconductors, reflecting a policy push to position India as a hub in global electronics and chip supply chains amid supply-chain diversification away from concentrated hubs.
Key Details
- 100% automatic-route FDI applies to electronics system design and manufacturing (ESDM), including semiconductor fabs and ATMP units.
- Semiconductor investment is treated as a strategic priority alongside schemes like Production Linked Incentive (PLI) for electronics manufacturing.
A foreign (Spanish) firm's large-ticket investment in an Indian state's semiconductor ecosystem illustrates this open FDI regime in practice.
- Investment announced: USD 2 billion (~Rs 19,000 crore) in Madhya Pradesh's semiconductor/data centre sector.
- Expected direct employment: nearly 5,000 jobs.
- India Semiconductor Mission outlay: Rs 76,000 crore (launched December 2021).
- Cumulative national semiconductor investment commitments (as of 2026): approximately Rs 1.6 lakh crore across around 10 approved projects.