Indian government to offer ₹76,000* crore( $10B) incentive package for semiconductor manufacturing in India

[Suriya]

Indian government to offer ₹76,000 crore incentive package for semiconductor manufacturing in India, report says
MARCIA SEKHOSE
DEC 10, 2021, 10:32 IST
The Indian government has plans to set up two fab units for semiconductor displays, and 10 units each for designing and manufacturing components. Unsplash

• The Indian government is reportedly planning a ₹76,000 crore incentive package for semiconductor companies.
• It plans to set up over 20 semiconductor units in India over the next six years.
• The new package comes amid the global semiconductor shortage that’s affecting every major industry.

Incentives worth ₹76,000 crore are reportedly being planned for semiconductor manufacturing in the country. The government plans to set up over 20 semiconductor design, components manufacturing, and display fabrication (fab) units in India over the next six years, according to a report by ET. This scheme is expected to be sent for approval to the Cabinet next week, and details to follow soon after.

Once the cabinet approval arrives, the semiconductor policy will be made and applications sent for companies to invest. The Indian government has plans to set up two fab units for semiconductor displays, and 10 units each for designing and manufacturing components. This could pave the way for India to become an electronics hub especially at a time when the semiconductor shortage is affecting industries globally.

Semiconductors are key components used in manufacturing various kinds of electronic devices. The worldwide shortage is currently affecting almost every major industry from smartphones, laptops, cars, appliances and more. This is causing a shortage of exports on units, prices going high, and a limited supply of products. According to a report by Omdia, smartphone companies are now moving to higher resolution image sensors but with fewer cameras due to the semiconductor shortage.


The semiconductor policy is said to “help deepen India’s manufacturing base,” according to the ET report. Once the cabinet approval arrives, the ministry of electronics and information technology (MeitY) will finalise the details and invite applications from interested companies, the report added. The Indian government’s previous incentive packages for semiconductor manufacturing did not see any takers so with another big package in plan, it’s interesting to see how this one pans out.

Companies like Samsung and Intel recently made some big investments in the US. Samsung announced it will build a $17 billion semiconductor factory in Texas. Intel is also spending $20 billion to build two new fab manufacturing plants in Arizona. If India too gets a global company to invest here, it would reduce dependence on importing semiconductors from outside, and also pave the way for local manufacturing in the country.

Indian government to offer ₹76,000 crore incentive package for semiconductor manufacturing in India, report says | Business Insider India

The Indian government is reportedly planning a 76,000 crore incentive package for semiconductor companies. It plans to set up over 20 semiconductor units in India over the next six years.

www.businessinsider.in

 

[Suriya]

India in talks with Taiwan for domestic semiconductor-manufacturing hub; trade, investment pacts also discussed
For India, semiconductor manufacturing is of utmost importance as the country's requirement of electronic chips--essential in the production of an array of items ranging from cars to smartphones--is expected to meteorically shoot up over the next couple of years.
MONEYCONTROL NEWS

DECEMBER 16, 2021 / 08:44 PM IST

Centre cleared an incentive scheme of Rs 76,000 cr on December 15, 2021 to attract semiconductor makers (Representational image)
India is in talks with Taiwan over the possibility of setting up a domestic semiconductor manufacturing hub, a report citing sources claimed on December 16. The two sides are also reportedly discussing agreements related to free trade and investments.
Taiwan is home to two of the world's biggest semiconductor giants--Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC).

New Delhi and Taipei are exploring the possibility of bringing either of the two companies to set up a manufacturing plant in India, Hindustan Times learnt from two persons familiar to the development.
The Indian side has also proposed a number of sites where the production plant could be set up, the persons said. They, however, noted that the process is "complicated".
"It is a very complicated process because a company like TSMC uses components from hundreds of other firms. Setting up a hub in India means convincing those firms to also set up a facility in India to ensure the supply of components," the newspaper quoted one of the source as saying.


If the talks end up being successful, this will be only the second instance when a Taiwanese semiconductor maker will launch a manufacturing unit in another country. Earlier, TSMC, which has a market value above $550 billion, had unveiled a $12-billion fabrication plant in the United States.

Investment, free-trade pacts

According to the report, India and Taiwan had set up four groups earlier this year to discuss an investment agreement and a free-trade agreement, apart from creating a domestic semiconductor-manufacturing hub and the training required for the purpose.

The investment and free trade pacts, which Taiwan is discussing with a number of countries, are likely to be used by it to diplomatically counter China at a time when tensions between the two neighbours are on a rise.

One of the groups set up by India and Taiwan met virtually earlier this year to discuss the free-trade agreement, Hindustan Times learnt from the sources. However, the group that is discussing semiconductor manufacturing has met twice in the same period, the report said.

Semiconductor manufacturing key for India

For India, semiconductor manufacturing is of utmost importance as the country's requirement of electronic chips--essential in the production of an array of items ranging from cars to smartphones--is expected to meteorically shoot up over the next couple of years.

The Union Cabinet on December 15 gave its nod to a production-linked incentive scheme with an outlay of Rs 76,000 crore ($10.2 billion) for development of semiconductors and display manufacturing ecosystem over the next six years.

In addition, the government will also provide incentives of Rs 2.3 lakh crore to boost electronic manufacturing in the country.

The announcements were aimed at projecting India as an ideal manufacturing location for global electronic manufacturers, particularly the semiconductor makers.

 

[Turingsage]

This is at least 2nd time this has been posted here.
We have played around incentives since the 80's. There have been NO TAKERS.
It will be news worthy of reporting WHEN a large semiconductor manufacturer ACTUALLY makes an investment and ACTUALLY builds a fab and ACTUALLY starts manufacture.
Till then these are just public relations stories we have been reading for at least 20 years.
Learn to count chickens when they hatch,

 

[Suriya]

This is at least 2nd time this has been posted here.
We have played around incentives since the 80's. There have been NO TAKERS.
It will be news worthy of reporting WHEN a large semiconductor manufacturer ACTUALLY makes an investment and ACTUALLY builds a fab and ACTUALLY starts manufacture.
Till then these are just public relations stories we have been reading for at least 20 years.
Learn to count chickens when they hatch,

When was the last time GOI announced
$10B incentive package for semiconductor manufacturing in India?

https://twitter.com/x/status/1471081437973532672

 

[Maler]

This is at least 2nd time this has been posted here.
We have played around incentives since the 80's. There have been NO TAKERS.
It will be news worthy of reporting WHEN a large semiconductor manufacturer ACTUALLY makes an investment and ACTUALLY builds a fab and ACTUALLY starts manufacture.
Till then these are just public relations stories we have been reading for at least 20 years.
Learn to count chickens when they hatch,

This time, it's quite a serious push by GoI. Hyderabad & Mohali are serious contenders or front runners for this FAB facility. GoI has done some serious analysis to set up a semiconductor hub at one or both of these locations!!! ROC Govt. is on board from the very initial stage!!!