In its drive to attract more international industries to set up their manufacturing plants in India, the central government is planning to offer more than 1 billion US Dollars to each semiconductor-based firm that sets up its manufacturing facility within the country. We already know that India has already attracted several smartphone assembly industries like Foxconn and Wistron among many, and the government now seems to strengthen its electronics supply chain.
According to sources, two officials from the local government stated that the above-mentioned incentive planning is a part of Prime Minister Narendra Modi’s ‘Make in India’ initiative. The ‘Make in India’ drive made the region become the world’s second-largest smartphone manufacturer after China. Now, it seems that the government intends to imply a similar strategy to bring manufacturing sites from chip-making-based firms.
“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).”
At the moment the world is facing an imminent shortage of semiconductor chips, and many experts believe that the crisis may very well carry itself to next year as well. However, governments across the globe have been subsidizing the semiconductor industry and the construction of chips making plants, to make an effort in satisfying the increasing chip demand.