The plan is being co-ordinated by the Prime Minister’s Office and senior officers have held discussions with TSMC, UMC, Intel and Fujitsu, the report said referencing an unnamed source.
The government is working on an incentive plan that would include money for capital expenditure, tariff reductions on certain products and benefits through the Scheme for Promotion of Electronic Components and Semiconductors (SPECS) the report said. No timetable was given for when the plan would be rolled out. According to reports the Indian government called for expressions from interest in chip manufacturing in India at the beginning of 2021. The Ministry of Electronics and IT reportedly received communications from 20 companies.
India imports all the semiconductors it uses, thought to be about a worth about $24 billion in 2021 but which could rise to $100 billion by 2025, the report said. Meanwhile India’s domestic production of electronic equipment is said to be worth about $75 billion and this is expected to rise to $350 billion to $400 billion in 2025.
India has called on numerous occasions for semiconductor companies to come and locate manufacturing in the country. While many companies come to employ design talent, problems of infrastructure and bureaucratic slowness have repeatedly thwarted plans to build a wafer fab.
Israel’s Tower Semiconductor foundry has spent several years trying to open up manufacturing in India but its CEO has reportedly written to Prime Minister Modi that inaction may cause it to pull out of a plan to build a $3 billion analog wafer fab in the Gujurat region of India.
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