'Intel - Welcome to India': IT Minister Ashwini Vaishnaw tweets after company lauds semiconductor incentives
While neither Thakur nor Intel have formally confirmed intentions to begin manufacturing chips in India, IT Minister Ashwini Vaishnaw has "welcomed" the news that Intel is heading to India.
Randhir Thakur, President of Intel Foundry Services, on Tuesday took to Twitter to applaud the Indian government's efforts to implement precise strategies and incentives to transform India into a manufacturing powerhouse for electronics and semiconductors. While neither Thakur nor Intel have formally confirmed intentions to begin manufacturing chips in India, IT Minister Ashwini Vaishnaw has "welcomed" the news that Intel is heading to India. Thakur stated in his post that he is pleased to see a strategy for all parts of the supply chain, including talent, design, production, testing, packaging, and logistics. "Intel, welcome to India," said the IT minister.
Concerning the "scheme," the government recently authorised a Rs 76,000 crore fund for designing and manufacturing semiconductor chips in India. When this news was made, Vaishnaw stated that Prime Minister Narendra Modi had made a historic choice in electronics, in which the development of a whole ecosystem, including design, manufacture, testing, and packaging, could take place within the nation. He stated that it would need an investment of Rs 76,000 crore. India has surpassed the USD75 billion mark in electronics production in just seven years. With the current growth rate, India would exceed USD300 billion in electronics manufacturing over the next six years, he noted.
As part of its efforts to position itself as a global electronics production powerhouse, India authorised a $10 billion incentive plan to hire semiconductor fabricators and display producers. According to a government source, Tower Semiconductor of Israel, Apple's contract manufacturer Foxconn, and a Singapore-based consortium have all indicated interest in developing semiconductor manufacturing operations in India.
When automakers and technology industries were dealing with a global chip shortage, India, the world's second-largest smartphone producer, revealed the plan. According to Reuters, Tata Group, one of India's largest conglomerates, is also entering the industry and talks with three states about spending up to $300 million in a semiconductor assembly and testing facility.