India approves $10 billion incentive plan to attract semiconductor, display manufacturers
According to a government source, Tower Semiconductor of Israel, Apple's contract maker Foxconn, and a Singapore-based consortium have all expressed interest in establishing semiconductor production plants in India.
FollowIndia's technology minister said on Wednesday that the country had authorised a $10 billion incentive scheme to recruit semiconductor fabricators and display makers as part of its attempts to establish itself as a worldwide electronics production powerhouse. According to a government source, Tower Semiconductor of Israel, Apple's contract maker Foxconn, and a Singapore-based consortium have all expressed interest in establishing semiconductor production plants in India.
According to the source, Vedanta Group was also interested in establishing a display fabrication unit in India. According to technology minister Ashwini Vaishnaw, New Delhi has authorised a design linked incentive (DLI) scheme to assist 100 domestic enterprises in semiconductor design for integrated circuits and chipsets.
According to Vaishnaw, Prime Minister Narendra Modi has made a historic move that would aid in developing the country's whole semiconductor ecosystem, from the design of semiconductor chips through their manufacture, packing, and testing.
India, the world's second-largest smartphone manufacturer, unveiled the proposal when automakers and technology firms dealt with a global chip scarcity. According to Reuters, Tata Group, one of India's largest conglomerates, is also getting into the sector and negotiating with three states about investing up to $300 million to build up a semiconductor assembly and testing operation.
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Meanwhile, Indian automakers have been facing the shortage for quite some time and it has deeply affected the production. Maruti Suzuki India's monthly output plummeted by 60% in September, 40% in October, and 15% in November. Maruti Suzuki automobiles have a long waiting list due to a shortage of semiconductors, and the Indo-Japanese carmaker has around 250,000 orders to process. The wait time for petrol models is 9-12 weeks, while the wait time for CNG vehicles is 17-1 weeks.
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