India on Friday said it would expand incentives for those investing in semiconductor manufacturing as their government attracts global companies in an effort to play a key role in the global supply chain for chips.
The $ 10 billion (approximately Rs. 76,523 crore) incentive scheme to attract semiconductor and display manufacturers has received applications from companies such as Vedanta and Vedanta, a joint venture between Foxconn of Taiwan and IGSS Ventures of Singapore.
“After this first tranche is utilized, we will definitely go further,” IT Minister Ashwini Vaishnav told India’s first semiconductor conference in the southern city of Bangalore.
“We have more hunger, we need more.”
The government estimates that the Indian semiconductor market, valued at $ 15 billion (approximately Rs 1,147.84 crore) by 2020, will reach $ 63 billion (Rs 4,82,096 crore) by 2026.
The global chip market is dominated by manufacturers in Taiwan, the United States and a few other countries, although more and more companies and countries are trying to ensure access to key chips of complex technologies such as 5G and the future.
Speaking at the Bangalore conference, Prime Minister Narendra Modi said that India wants to play a key role in global semiconductor supply chains and asked them to think about setting up companies. This push is part of Modi’s flagship “Make in India” project.
Tech giants Intel, TSMC and Micron Technologies executives attended the three-day conference as part of the government’s efforts to attract large ticket investments.
At the event, Rajiv Chandrasekhar, Junior IT Minister of India, said that the world’s leading majors were “actively engaged in exploring the Indian opportunity”.
In the race to become India’s first chipmaker, Vedanta is seeking incentives such as 1,000 acres (405 hectares) of free land for semiconductors and displays as part of its $ 20-billion (approximately Rs. 1,53,046 crore), Reuters reports. On Thursday.
© Thomson Reuters 2022