The Indian government has recently issued an Expression of Interest (EoI) for setting up an existing semiconductor FAB plant in the region and is even planning to offer incentives to attract investments.
According to a BusinessToday report, the government is keen on bringing investments to set up or expand a wafer/device fabrication plant within the country or even acquire semiconductor FABs outside of India. Notably, the plans are the main part of the government’s National Policy on Electronics 2019, which aims to position India as a global hub for Electronics System Design and Manufacturing (ESDM).
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For those unaware, semiconductor technologies are an integral part of the digital world in this day and age, with various economies also rushing for a similar goal at the moment. Notably, semiconductors are a crucial part of the total value of Bill of Material (BOM). Furthermore, semiconductor manufacturing is a complex and research intensive area that also requires high investments. Thus, the Indian government is planning to incentivize and attract investments to set up FABs in India.
This move also arrives as the nation is striving to increase it global manufacturing share of smartphones, automotive electronics, IT hardware, industrial and medical technology, and even IoT (Internet of Things) devices within the near future. The country plans on expanding its electronics manufacturing sector to 400 billion US Dollars by the year 2025. The government is currently inviting proposals for semiconductor FABs with the last date of submissions being 31st January 2021. Information received through these responses will help in formulating a scheme to expand on existing semiconductor facilities or acquire such plants outside of India.
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