India is offering incentives in cash to companies that contribute to the country’s development. Targeting semiconductor companies, those that set up manufacturing units in India will be able to receive the incentive. This plan is in line with the country’s aim to build a smartphone assembly industry and strengthen its electronics supply chain.
India goes all out with its incentives program to attract more semiconductor companies in
India’s local manufacture has helped India grew a lot. Prime Minister Narendra Modi was the one who encouraged the ‘Make in India’ movement. The result of Modi’s program was commendable. India came behind China as the world’s second-biggest mobile manufacturer. To boost India’s economy and reputation further, the country has finally decided to commence with the incentive program.
India is setting the cash incentives minimum to $1 billion for each semiconductor company. The prerequisite for the companies to receive the incentives is for them to set up manufacturing units in India.
An anonymous senior government official revealed to Reuters, “the government will give cash incentives of more than $1 billion to each company which will set up chip fabrication units”.
“We’re assuring them that the government will be a buyer and there will also be mandates in the private market (for companies to buy locally made chips),” the statement continued.
The government, however, has not decided how to disburse cash incentives. In regard to this, another source from Reuters said that the government has requested feedback from the industry.
Despite the massive amount of money involved in the incentives program, no semiconductor company is said to have shown interest in the offer.
Meanwhile, India‘s technology ministry remained silent when requested for comment.
Semiconductor companies and the rising chip demands
India is not the only country to push semiconductor plants manufacture. The recent chip shortages caused by ballooning demand in electronics signs the significance of semiconductor plants in the new age. Taiwan was one of the countries that benefitted a lot through the auto and electronic industries dependence on semiconductor companies.
India’s clash with China more or less contributed to India’s ambitious aim. In the future, India hopes to establish reliable suppliers for its electronics and telecom industry.