Jobaaj Stories
Certain reports are suggesting that the Indian government is looking to revive its plans to attract more chip manufacturers to boost domestic chip production in the country.
Last year, the Indian government had given a 45-day period to all interested parties from 1st January 2022 to apply for the Production-Linked Incentive schemes, which had promised as much as 50% support in building the chip manufacturing facility. However, the small window of time limited the number of applicants. Moreover, the promised projects, which include a $19.5 billion JV between Vedanta and Foxconn, are taking a lot of time.
Therefore, the Indian government is looking to reopen its application process for these incentives and assistance which are worth close to $10 billion. Moreover, the government is also planning to remove the 45-day period and keep the process open-ended while it continues to accept applications under the scheme until it exhausts its budgeted quota of $10 billion.
According to reports, all participants in the scheme will be required to make specific disclosures regarding several matters such as agreements with technology partners, financing plans, target customers, production type, and others. Moreover, to avail the benefit of the 50% government support, the company must produce the semiconductor chips using the 28-nanometer or even more advanced technology.
The global semiconductor industry saw sales of $574 billion of which 48% was made by US-based companies. Taiwan is still the world’s largest producer of semiconductors, and India still does not have a recognizable position in the industry as a manufacturer. This move can be seen as a bid by the Indian government to be a part of the semiconductor race.
- Aman Agarwal
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