India Receives 4 Proposals For Chip Manufacturing Plants, 13 For Assembly Units; Says MoS Rajeev Chandrasekhar

Published  February 8, 2024   0
S Staff

By the end of 2026, the government of India is looking for a growth of $55 billion and $110 billion by 2030

In a written reply to the lower house of the Indian parliament, Minister of State for Electronics and IT, Rajeev Chandrasekhar has stated that the government has received a total of four proposals setting-up chip manufacturing plants, and 13 for semiconductor assembly units. These applications are in addition to Micron’s investment of Rs 22,516 Cr chip assembly plant in Gujarat.

The minister said, “Four proposals have been received for setting up semiconductor fabs and additional 13 proposals have been received for setting up compound semiconductor fabs and ATMP ( assembly, testing, marking and packaging) facilities." The Semicon India Program was already approved by the union government, approving a total outlay of Rs 76,000 Crore for growing the display and semiconductor manufacturing industry in the nation. This incentive scheme will provide fiscal assistance to those firms who are planning to invest in India’s semiconductors, display manufacturing, and design ecosystem.

A couple of days back, the minister even added that the India semiconductor research center (ISRC) will spearhead in growing India’s potential in the semiconductor industry. The international semiconductor industry is dominated by a few firms operating in the US, Taiwan, and South Korea. This situation has forced India to become completely dependent on a few companies for this very important component, which is now serving as the backbone of cars to smartphones. 

Therefore, after carefully examining these situations, the central government after several rounds of heated discussions has started unleashing schemes and incentives to magnetize global semiconductor companies to Make-in-India. Towards the end of 2026, the government of India is looking for $55 billion in the semiconductor industry and also set a target of $110 billion by 2030.