It is not clear whether component manufacturing is limited to packaging, test and assembly of semiconductor components or could also include wafer fabrication of integrated circuits.

The report said the production linked incentive plan is intended to help the creation of more than 20 facilities.

This would include one or two display manufacturing sites and 10 or more units for the design of components and another 10 or for the manufacturing of components, the report quoted officials as saying.

The scheme is likely to go before the Indian cabinet for approval this week and then go to the Ministry of Electronics and Information Technology (MEITY) to work out an approvals process and invite applications.

In the past such government-driven processes have tended to become bogged down in bureaucracy and have produced almost no results often due to problems with obtaining land approvals, and due to the reliability of the electrical and water supplies.

Related links and articles:

Tata in talks over $300 million Indian chip packaging factory

Tata plans to make semiconductors in India

Report: India pushing to prep chip manufacturing incentive plan

India asks Taiwan to include wafer fab in trade deal

Indian analog wafer fab plan stuck in neutral

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