The union ministry has also passed a new design linked incentive (DLI) plan that will aid scores of domestic firms in designing and developing semiconductors for integrated SoCs and circuits
After several rounds of heated discussions and scuffles, the Indian government has finally approved the incentive package of Rs 76,000 crore ($10 billion) to magnetize the display manufacturers and semiconductor fabricators. This decision will help the country to build itself as the international center for electronics, claims Union Minister Ashwini Vaishnaw. A consortium based in Singapore, Foxconn, and Israel’s Tower Semiconductors have already expressed their interest in commencing their manufacturing units in India soon.
In the official statement, the incentive scheme clearly states that the Indian government will provide the financial assistance upto 50 percent to the qualified display and semiconductor makers. According to some sources, Indian business conglomerate Vedanta Group has also expressed interest in building a display manufacturing plant in India. To meet the same, the union ministry has also passed a new design linked incentive (DLI) plan that will aid scores of domestic firms in designing and developing semiconductors for integrated SoCs and circuits.
According to several industry associations and experts, this move by India became successful because a lot of international firms are now looking to set-up their manufacturing units other than China as the current tussle between the US and Beijing is escalating every now and then. This is where India is now trying hard to uplift its electronics value chain. Union Minister Ashwini Vaishnaw told the media, “The program will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design."
For the past eight years, India has always been a key importer of semiconductors to meet the demand that is speculated to reach $100 billion by 2025 from about $24 billion. Earlier all efforts were wasted to get global firms to invest in semiconductor manufacturing units because its procedure needed a massive investment. The investments for fab manufacturing in India involves $5 billion and $10 billion.