According to reports, the Indian government is planning incentives totaling INR 76,000 Crores for semiconductor manufacturing in the country.
According to an ET report, the government wants to build around 20 semiconductor design, component production, and display fabrication (fab) plants in India over the next six years.
The Cabinet is anticipated to approve this programme next week, with specifics to follow shortly after. Once the cabinet approves the semiconductor policy, applications for firms to invest will be sent out.
The Indian government intends to build two fab units for semiconductor displays and ten fab units for component design and manufacturing.
This might open the way for India to become an electronics powerhouse, particularly at a time when the global semiconductor scarcity is wreaking havoc on businesses.
Semiconductors are essential components in the production of a wide range of electrical gadgets. The global shortage is harming practically every major industry, including smartphones, computers, automobiles, appliances, and more.
This has resulted in a lack of unit exports, rising prices, and a limited supply of products. Due to the semiconductor shortage, smartphone manufacturers are switching to higher quality image sensors with fewer cameras, according to a research by Omdia.
According to the ET report, the semiconductor policy will “assist in deepening India’s industrial base.” The ministry of electronics and information technology (MeitY) will finalise the details and solicit applications from interested companies after cabinet permission is received, according to the report.
Previous incentive packages for semiconductor manufacture offered by the Indian government failed to attract takers, so it would be interesting to watch how this one turns out.
Samsung and Intel, for example, have recently made significant investments in the United States. Samsung has announced the construction of a $17 billion semiconductor plant in Texas. Intel is also investing $20 billion in Arizona to create two new fab production sites.
If a worldwide corporation decides to invest in India, it will reduce the country’s reliance on imported chips while also paving the road for local manufacture.
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