India convincing Intel and other semiconductor giants to set up local production plants in the country

The Indian government is courting major chipmakers such as Intel, Taiwan Semiconductor Manufacturing Co., and GlobalFoundries to boost the semiconductor industry, which is still in its early stages.

According to a Bloomberg News article, the government is in negotiations with these corporations about establishing local operations and bringing high-tech manufacturing to the country.

Semiconductor chipsets are found in a wide range of consumer devices, including smartphones, laptops, computers, automobiles, smart home products, and more.

The Indian government announced a production-linked incentive (PLI) scheme worth 76,000 crores (roughly $10 billion) in December 2021 to help the country develop a semiconductor ecosystem. The government has agreed to reimburse up to 50% of the project costs as part of the scheme.

“Most of the pitches to these big companies, I’m making myself. We’re meeting the CEOs, talking to them, making presentations,” Rajeev Chandrasekhar, minister of state for electronics and information technology said in an interview with Bloomberg News.

States in India are competing to attract semiconductor titans

“They’re all willing to sit down and talk about what additional incentives they can offer investors than land.” He went on to say, “It’s a hotly competed, hotly sought-after investment by states.”

While a joint venture between Vedanta Group and Foxconn Technology Group has expressed interest in establishing semiconductor foundries in the country, other companies are wary of the country’s infrastructure and power outages.

Thanks to government incentives and the imposition of taxes on imported devices, India was able to achieve its goal of bringing smartphone manufacturing to the country. Setting up a semiconductor sector, on the other hand, necessitates large investments, and the government aims to utilize incentives primarily to entice the larger companies.

Pat Gelsinger, the director of intelligence, met with Prime Minister Narendra Modi earlier this month. According to a Business Today story, the two talked about India’s semiconductor PLI scheme.

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