India has recently approved a new 10 billion US Dollar incentive plan. This large sum will be used to lure in certain semiconductor and display makers, as per Union Minister Ashwini Vaishnaw.
According to a Reuters report, a number of semiconductor manufacturers have apparently shown interest in this plans, with Israel’s Tower Semiconductor, known Apple supplier Foxconn, and a Singapore based consortium mulling plans to set up a semiconductor fabrication site in India. Similarly, display maker Vedanta Group has also shown interest in building a display manufacturing factory in India as well, as per sources close to the matter.
As of right now, the government has approved a design linked incentive (DLI) plan that will encourage 100 local companies in semiconductor design for integrated circuits and chipsets. As per technology minister Ashwini Vaishnaw, “Prime Minister (Narendra Modi) has taken a historic decision today that will help develop the complete semiconductor ecosystem — from the design of semiconductor chips to their fabrication, packing and testing — in the country.” Notably, India’s 10 billion US Dollar plan arrives as the world is still suffering from an ongoing global shortage of chipsets.
But meanwhile, the Tata Group also has plans to venture into the semiconductor business with three states to invest up to 300 million US Dollars. This would even have it build a semiconductor assembly and test unit as well. Keep in mind that its still too early to tell which companies end up taking the sizeable incentive, so stay tuned for more updates regarding this matter.
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