Sankalp Pattiyal

NEW DELHI, (Reuters) –India approved a $10 million incentive plan to lure semiconductor and display manufacturer, the technology minister announced on Wednesday. This is part of a deeper push to make India a world electronics manufacturing hub.

According to the Indian government, fiscal support will be extended to up to 50% of the cost of eligible projects to qualified display and semiconductor manufacturers under this plan.

Israel’s Tower Semiconductor (NASDAQ) – Taiwan’s Foxconn has expressed interest in India, while a consortium of Singaporeans from Singapore and Vedanta (NYSE) Group were keen to establish a display factory.

Vedanta, Foxconn Tower and Foxconn did not respond immediately to our requests for comment.

According to the government, “The program will herald a new age in electronics manufacturing” by offering a competitive incentive package for companies involved in display and semiconductor manufacturing.

Due to ongoing trade disputes between Washington and Beijing, some companies seek to diversify overseas manufacturing. This drive is an indication that India wants to increase its electronics value chain.

India’s plan to incentivize semiconductor manufacturing also comes at a time when automakers and tech companies around the world are grappling with a global chip shortage https://reut.rs/3dRmPST.

New Delhi approved an incentive program to help 100 companies that work on integrated circuits and chipset design.

Ashwini Vaishnaw Technology Minister stated that her plan would aid in developing “the entire semiconductor ecosystem, from design and fabrication to packing and testing of these chips” during a briefing.

‘ADVANCED TECHNOLOGY’

The government stated that it anticipated the scheme would create around 35,000 jobs of quality, 100,000 indirect job opportunities and bring in investment totaling 1.67 trillion rupees ($8.8billion).

To attract some of world’s top electronics companies to India, Prime Minister Narendra Modi offered $30 billion worth incentives.

India is now the second-largest smartphone market after China.

India has been able to secure investment commitments from Foxconn and Wistron, three of Apple’s most prestigious contract manufactures.

A. Gururaj (managing director, Optiemus Electronics), stated that the government’s plan would help India bring more technology, employment, and larger investments. It will reduce the cost of imports for tech products.

Tata Group, one of India’s biggest conglomerates, is venturing into the semiconductor business and is in talks with three states to invest up to $300 million to set up a chip assembly and test unit, Reuters reported https://reut.rs/3FdNdTf last month.

($1 equals 76.3780 Indian Rupees).